AUD/USD may see a short-term setback, ahead of further gains up to 0.7284/7306 – Credit Suisse

AUD/USD now faces some consolidation, but it is still expected to see further gains ahead, according to economists at Credit Suisse.

Break below 0.6819/11 would relieve upside risks

“AUD/USD has entered a short-term consolidation below an important cluster of retracement levels at 0.7120/42. We see scope for a lengthier pause below this key level and likely a deeper short-term setback. However, with short and medium-term momentum still rising and moving averages close to a bullish cross higher, we stick with our broader bullish bias and look for further gains post this setback.”

“A closing break above 0.7120/42 would open up the next key cluster of levels at 0.7284/7306, which is the 61.8% retracement of the fall from 2021 and a key price high.”

“Below the inflection point at the 55DMA and the 200DMA at 0.6819/11 would relieve the upside risks and leave the market in more of a rangebound environment.”