AUD/USD: In a clear downtrend – Credit Suisse

AUD/USD is seeing a modest rebound higher following its sharp fall early last week, in line with the market being in oversold territory, economists at Credit Suisse apprise.

Key quotes

“The short term bounce might extend further, with also a large bearish ‘outside week’.”

“We expect the downswing to extend further in due course, with important support not seen until the August 2002 low at 0.5263, where we might expect to see a first attempt to floor the market.”

“Removal of here can see a move back to the 2002 low at 0.5053, with scope to the 2001 low at 0.4776.”