Credit Suisse discusses AUD/USD technical outlook and flags the importance of the 0.6856 level for near-term directional bias.
"We are seeing a minor top established, which would be confirmed with a close below the aforementioned .6856. This increasingly likely scenario is also supported by daily MACD momentum turning lower.
With this in mind, we see support initially at the 21day exponential average at .6777, where we would expect a first attempt to hold. Removal of here though could see a move back to the 23.6% retracement of the March/June surge, 200-day average and the ‘measured top objective’ at .6696/51, where we would expect to see a more concerted effort to hold," CS notes.
"In contrast, a close back above .6856 would see the current consolidation phase extend further and we would look for an eventual renewed test of .7032/41 and .7063 in due course. An eventual break above here would reinforce the view of a broader change in trend to the upside," CS adds.