The AUD/USD pair is trading just below the 0.7200 mark. Analysts at Credit Suisse look for a break below support at 0.7174/69 to suggest the corrective recovery is over and broader downtrend resumed.

Below 0.7169 next support aligns at 0.7129

“We look for a break below support from the shorter-term uptrend from December at 0.7174/69 to suggest the corrective recovery is over and broader downtrend resumed in line with the major top completed last year.” 

“Below 0.7169 and we would see support next at the January YTD low at 0.7129, removal of which should add momentum to the decline for a move back to 0.7089/82 and eventually a retest of medium-term support at 0.6992/91 – the late 2020 and 2021 lows.”

“Below 0.6992/91 should then open up an eventual move to 0.6758, which remains our core medium-term objective.” 

“Short-term resistance moves to 0.7233, with 0.7277/84 ideally now capping to keep the immediate risk lower. A break can clear the way for a lengthier corrective recovery still with resistance seen next at 0.7315, then 0.7341/47.”