AUD/USD: 2020 high at 0.7742 to cap for now – Credit Suisse

“AUD/USD saw another test of the crucial late 2020 high at 0.7742 yesterday, before reverting back lower and coming to a halt just shy of the pivotal 13-day exponential average, currently at 0.7632. The market is seeing strength unfold again in early trading today, however further near-term consolidation is likely at this point below the 0.7742 highs.”

“With the broader uptrend still intact and a large ‘head and shoulders’ base still in place though, a break above 0.7742 is expected in due course, which would open up a move to the psychological inflection point at 0.7800 next, removal of which would see a test of the April 2018 high at 0.7816.”

“Support moves initially to 0.7691, then 0.7643, removal of which would see a renewed test of the aforementioned 13-day exponential average at 0.7632, which ideally holds to keep the market in its near term range. Below would confirm a deeper setback, with next support at 0.7557.”