AUD/USD has turned back lower over the past couple of weeks after being capped below the important cluster of resistances at 0.7541/57. As economists at Credit Suisse note, the aussie is threatening a major top, leaving the pair at risk of falling as low as 0.6758.

AUD/USD is still threatening a major top

“The aussie is still potentially threatening a large topping pattern, with key medium term supports starting at 0.7122/06 and stretching down to 0.6991, which includes the 38.2% retracement of the 2020/21 recovery and the ‘neckline’ to the 2020 base.”

“A break below 0.6991 would complete a major top to suggest a fall back to 0.6758, which is the 50% retracement of the 2020/21 upmove.”