AUD/USD to suffer a substantial drop on a break below 0.6990 – SocGen

AUD/USD has rebounded after revisiting November 2020 levels of 0.6990. However, the bounce is set to run out of steam ahead of the 0.7250 level. Economists at Société Générale warn that a break below 0.6990 would imply a deeper down move.

Upside limited

“A large upside is not envisaged; daily Kijun line at 0.7250 should contain.”

“In case 0.6990 breaks, there would be a risk of deeper downtrend.”