The Australian dollar is expected to be one of the stronger currencies in Q2. In the view of analysts at Credit Suisse, AUD/USD looks like it is in the process of forming a small bullish “pennant”, which would be confirmed above 0.7541/57 and would mark an important medium-term breakout.

Key support aligns at 0.7455/41

“This consolidation phase could be a small bullish ‘pennant’ continuation pattern, which would be triggered above the October and recent range high at 0.7541/57. Above here would open up a move to the late June and July highs at 0.7599/7616, with only a sustained break above here making a solid case for a fresh medium-term uptrend to arise, with next resistance then seen at 0.7715, before 0.7777/85.” 

“Support is seen at 0.7479/68 initially, ahead of the last week’s low at 0.7455/41. Below here would shift our bias to tactically neutral, with next support at the recent price low at 0.7372/58, with a move below here shifting the near-term risk lower and warning of a potential fall back to mid-March low at 0.7173/63.”