AUD/USD has quickly turned back lower. A break below key short-term support at 0.7164 would turn the risks back lower, but still within the context of the short-term range, with more important supports back at 0.7086/49, analysts at Credit Suisse report.

AUD/USD set to settle into a broader short-term range

“Key support is seen at the 55-day average, uptrend from the 2022 lows and recent price low around 0.7164. Below here would quickly turn the short-term risks back lower within what we now expect to be a broader range. Next key support is seen at 0.7086, then eventually 0.7063/49.” 

“Only a move below 0.7063/49 would definitely reinstate the medium-term downtrend, which we still view as intact, given that the market remains below the falling 200-day average and the weekly MACD remains bearish, with scope for the YTD lows 0.6972/62 to be challenged in that scenario.” 

“Our base case is that the market is set to settle into a broader short-term range, with 0.7315/38 expected to provide a solid cap on the topside.”