AUD/USD to move higher on a break of December 2019 top at 0.7032 – Credit Suisse

AUD/USD seems to have stabilised in the neutral territory, just above the 0.6900 level, ahead of the 0.7032 December high which is expected to be broken, according to economists at Credit Suisse whose bias stays to the upside.

Key quotes

“With weekly MACD turning higher we expect an eventual move higher following this short-term period of consolidation. Above the December 2019 high at 0.7032 and July 2019 high and 78.6% retracement of the April 2019/March 2020 downfall at 0.7082/92 in due course then would further reinforce the view of a broader change in trend to the upside and see a move back to the 61.8% retracement of the fall from 2018 at 0.7133/40 ahead of a renewed test of the April and late February 2019 highs at 0.7206/07.”

“Support at the 200-day average and 23.6% retracement of the March/June surge at 0.6696/66 ideally holds.”