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

AUD/USD maintains its core downtrend, with scope of reaching the 2020 low at 0.5506, analysts at Credit Suisse report.

Current pause may stay in place for now

“AUD/USD maintains its medium-term downtrend and though the current pause may stay in place for now, we continue to look for further sustained downside.”

“We expect a fall to the 78.6% retracement of the 2020/21 uptrend and the low from April 2020 at 0.6041/5978 initially. Whilst we would stay wary of another pause here, a convincing break lower would be seen to open the door for a move all the way to 0.5506 – the low of 2020.”