AUD/USD has closed firmly above 0.7428, securing an irregular basing structure to turn the short-term risks higher. The next key resistance is at 0.7478/85, as the Credit Suisse analyst team notes.

See: AUD/USD to tank to 0.70 over next three months amid dovish RBA – Rabobank

The break above important resistance at 0.7428 turns the short-term risks higher

“A break above the downtrend from May at 0.7478/85 would be the final confirmation that the 2021 downtrend is over, opening up a move to 0.7499/7504 next, then 0.7557.”

“We even see scope for a recovery to the cluster of resistances around 0.7600/7640, which includes the ‘neckline’ to the 2021 top, 200-day average and series of price highs. 

“Support at the 0.7428 breakout point now ideally holds to keep the risks directly higher. In contrast, a false breakout would be confirmed below 0.7394/91 and certainly 0.7355/45, which would suggest the market is instead shifting into a rangebound phase.”