AUD/USD to suffer a substantial drop towards 0.6758 – Credit Suisse

AUD/USD finally closed below important support at 0.7106 on Thursday, which analysts at Credit Suisse look to be sustained into the weekly close to confirm a major long-term top. They see scope for a fall to 0.6758 if the top is confirmed.

Ongoing deterioration in the trend-following setup
“AUD/USD has finally closed below major support at 0.7106, which we look to be sustained into the weekly close given that the trend picture remains strongly negative. This would confirm a much larger long-term top, which would turn the long-term risks lower and suggest that aggressive further weakness is likely.”
“We look for a move to 0.6991, with the size of the top suggesting a move to 0.6758 is easily achievable over the medium-term and potentially even beyond.”

“Near-term resistance is seen at the ‘neckline’ to the top at 0.7146, which the market continues to hold below into the close. Above here and then 0.7169/74 would suggest a corrective recovery.”