AUD/USD: Risk of one more down leg while holding below 0.6525 – SocGen

AUD/USD has staged an initial bounce after probing multi-month descending line near 0.6360. 0.6525 is first hurdle, analysts at Société Générale report.

Failure to reclaim 0.6525 can trigger new selling

AUD/USD has recently formed an interim support at 0.6360 as it touched the line connecting lows of March and May. An initial bounce is taking shape however signals of a large upside are not yet visible. 

Recent pivot high at 0.6525 is expected to be first layer of resistance near term. 

Holding below 0.6525, there would be risk of one more down leg. Next potential support is located at projections and October 2022 low of 0.6200/0.6170.