AUD/USD breaks above 2019 high at 0.7295 with next resistance at 0.7394 – Credit Suisse

AUDUSD has moved sharply higher this week and has broken above the 0.7276/95 range highs. This breakout does suggest the medium-term uptrend should be resuming, with next resistance seen at 0.7394, analysts at Credit Suisse reports.

Key quotes

“AUD/USD has moved sharply higher this week and is now breaking above its range highs and the important 2019 high at 0.7276/7295, after holding as expected above the much tested 21-day exponential average at 0.7188/84 and in line with our medium-term bullish outlook.” 

“Whilst short-term momentum remains incredibly lackluster, which suggests some caution is warranted, this breakout does suggest the medium-term uptrend should be resuming, with next resistances at 0.7394, which is the December 2018 high, then our long held medium-term objective at 0.7574/7638, which is a cluster of major Fibonacci retracement levels.” 

“We now ideally look for the market to hold above the 0.7290/76 breakout point, particularly into the daily close today. Below would reinforce the story of an exhausted momentum state, with next supports then seen at 0.7217/16.”