AUD/USD saw a rebound lower from just ahead of the April high at 0.6570 as expected, posting a mild bearish ‘reversal day’, per Credit Suisse.
“The market rejected the 0.6570 April high and completed a small bearish ‘reversal day.’ Furthermore, it’s notable that daily MACD momentum is now crossing lower.”
“Support is initially seen at 0.6432, then the 21-exponential average at 0.6414/12. Removal of here would see a push back to 0.6379/73, below which would now complete a small ‘double top’ as well as negating the previous bullish ‘outside day’.”
“A clear and closing break above 0.6570 would likely see a test of the 200-day average and 78.6% retracement at 0.6672/6706, where we would expect to see a cap if reached.”