FXStreet notes that AUD/USD has finally confirmed its bearish “wedge” continuation pattern below the 0.7288 recent low to reinforce its existing large top to result in an aggressive sell-off. Economists at Credit Suisse maintain a bearish outlook for 0.7085/43 – the “measured top objective” and 38.2% retracement of the entire 2020/2021 bull trend.

“We see support next at 0.7221/09 – the 78.6% retracement of the rally from last November. Whilst this should be allowed to hold at first, below in due course should see support next at 0.7159/45 and eventually our core objective at 0.7085/43 – the ‘measured top objective’ and 38.2% retracement of the entire 2020/2021 bull trend. With key price support from the late 2020 low not far below at 0.6991 we continue to look for a floor here.” 

“Resistance moves to 0.7278/88 initially, with 0.7315/19 now ideally capping to keep the immediate risk lower.”