AUD/USD to test and then likely break support at 0.6598/94 – Credit Suisse

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.