AUD/USD to test the 2019 high at 0.7295 in the medium-term

The AUD/USD pair maintains a large “head and shoulders” base and is expected to move higher over the medium-term. The aussie is set to face resistance at the 0.7295 2019 high. On the flip side, the 0.6775 support needs to be hold to maintain the upside bias, per Credit Suisse.

Key quotes

“AUD/USD is consolidating near-term but a large ‘head and shoulders’ base remains in place to keep our medium-term bias higher. Post this consolidation phase we see resistance initially at the 2019 high at 0.7295, above which we see the more important 78.6% retracement of the 2018/2020 fall and 38.2% retracement of the entire 2011/2020 fall at 0.7574/7638, which we expect to be a tougher barrier to clear.” “Support at 0.6777/75 ideally holds to keep the upside bias intact. Beneath here can see a move back to 0.6708”