AUD/USD: Poised for a move to the 0.8007 highs – Credit Suisse

AUD/USD has broken out of its range to the topside above 0.7816/18, completing a short term base and turning the core bias of analysts at Credit Suisse back higher. 

Support now seen at 0.7819/16

“AUD/USD surged higher on Friday, breaking above resistance at the range top at 07814/18 to turn our core bias higher again, in line with the re-accelerating daily MACD momentum. The pair has also broken above the next resistance at the 0.7838/49, which triggers an irregular basing structure, with the next levels at 0.7900/05, then the 0.8000/07 high.” 

“We expect the 0.8000/07 high to prove a tough barrier once again, however, with the core medium term uptrend still intact and reasserting itself, we now expect a break in due course, which would open up an eventual move to the 2018 highs at 0.8126/36.” 

“The aussie should now hold above its 0.7819/16 breakout point to keep the risks directly higher. Below here and then Friday’s low at 0.7760 would suggest a false breakout to leave the market back in a range.”