AUD/USD’s correction was capped at 0.7241/7278. Analysts at Credit Suisse anticipate a turn back lower to 0.6758 in due course.

Stable close above 0.7278 to signal yet another false breakout

“AUD’s recovery has been capped below a cluster of key resistances at 0.7241/7278, which includes the 38.2% retracement of the fall from 2021, the 50% retracement of the April/May fall, the 200-day and the 55-day moving averages, as well as the highs of May. With near-term MACD also showing signs of turning lower, we stay biased for the downtrend to reassert itself from here and thus look for an eventual move to the YTD low at 0.6827, ahead of our medium-term objective at 0.6758.”

“A stable close above 0.7278 would negate our medium-term bearish leaning and signal yet another false breakout within a broader range.”