AUD/USD to suffer a deeper down move on failure to hold 0.6640/10 – SocGen

AUD/USD stabilises after 2.35% drop yesterday, most since March 2020. Holding above 0.6640/10 support zone is crucial to avoid a deeper fall, economists at Société Générale report.

Move beyond 0.6900 essential for affirming continuation in up-move

“Establishing itself beyond 0.6900 is essential for affirming continuation in up-move.” 

“A short-term consolidation is not ruled out; lower end of recent range at 0.6640/0.6610 is first layer of support. In case this gets violated, a deeper down move is likely towards 0.6520, the 50% retracement of the bounce and 0.6340.”