After the Reserve Bank of Australia (RBA) meeting, the AUD/USD has risen strongly once more. Nonetheless, Credit Suisse economists expect the Australian dollar to remain restricted below major support at 0.7597/7617.
“After the RBA meeting, the AUD/USD has returned to the ‘neckline’ of its major peak at 0.7597/7617, but the latest weekly closing below this crucial band of support has turned us into a medium-term bearish stance, and we still expect this level to cap.”
“A closure below the 200-day average at 0.7573 would signal that the ‘neckline’ resistance has held.” After that, near-term supports go to 0.7508, then 0.7447, before the more significant 23.6 percent retracement of the upmove from 2020, which is at 0.7418. It’s worth noting that there isn’t much support below this level, with the nearest minor support around 0.7379/72. To cap, we’re still looking for ‘neckline’ resistance at 0.7597/7617. Above this, the next resistances are seen around 0.7642/45, then 0.7694/7707, making the top much less tempting.”/n
