AUD/USD: 0.6894/21 to hold the current weakness to keep the near-term bias higher – Credit Suisse

AUD/USD is testing 0.6894/6720, which analysts at Credit Suisse look to hold to keep the risk skewed higher for a retest of retracement resistance at 0.7089/92.

Stable close below 0.6821 to trigger more neutral and choppy trading

“Despite the setback, medium-term momentum is still rising and the breakout remains intact and we, therefore, stick with our bullish bias whilst the market holds above the 0.6894/21 zone. With that in mind, a quick move back above 0.6948 is needed to ease yesterday’s bearish pressure and pave the way for a retest of 0.7063 yesterday’s high, though with the key resistance zone seen not far above at 0.7089/7138.”

“Only a stable close below the 200DMA at 0.6821 would speak in favor of a more neutral and choppy trading environment, with next support below seen at the 55DMA at 0.6749 and then at 0.6721.”