AUD/USD could sustain a substantial drop to the low of 2020 at 0.5506 – Credit Suisse

AUD/USD is set to remain under pressure. Therefore, economists at Credit Suisse expect the pair to potentially dive to the low of 2020 at 0.5506.

AUD/USD to suffer a deeper decline

“With medium-term momentum staying bearish, we look for a fall to the 78.6% retracement of the 2020/21 uptrend and the low from April 2020 at 0.6041/5978 after the pause. Whilst we would not rule out another short pause here, a convincing break lower would raise a prospect for a move all the way to 0.5506 – the low of 2020.”

“We look for any attempt for a stronger move higher to be held at the falling 55-day average at 0.6651.”