Analysts at Credit Suisse look for a test of price support at 0.6598/94, with a break lower now seen likely.
Break above 0.6714/15 needed to ease the immediate downside bias
AUD/USD completed a large bearish ‘outside day’ on Thursday. This is expected to clear the way for further weakness for a test of the July low and late June low at 0.6598/94. Whilst an attempt to hold here should be allowed for, our bias is now for a break in due course and for further weakness to be seen to support next at 0.6562/60, with scope for the potential uptrend from last October, today seen at 0.6532.
A break above 0.6714/15 is needed to ease the immediate downside bias to reassert the broader choppy range for resistance next at 0.6750, then 0.6785.
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