AUD/USD has reversed its break above key resistance at 0.7557. Although there is a risk of a deeper corrective pullback, analysts at Credit Suisse maintain a medium-term bullish outlook for an eventual move to 0.7777/85.

Medium-term technical picture is increasingly positive

“We stick with our core bullish view and look for 0.7455/41 to ideally hold any further decline on a closing basis. Thereafter, we look for a move back to 0.7593/7601, ahead of the recent high at 0.7653/62. Above here would clear the way for a move to the June high at 0.7777/85 in due course.” 

“A close below 0.7455/41 would warn of a deeper setback and turn the short-term risk lower for a move to 0.7427 and then to 21st of March low at 0.7372/58.”

“The medium-term technical picture is increasingly positive, with weekly MACD now outright bullish and medium-term moving averages similarly close to crossing higher. We, therefore, see any weakness from the 21st of March low at 0.7372/58 as corrective whilst above 0.7300/7287.”