FxWirePro: AUD/USD extends weakness in response to dismal China data dump, eyes 0.6890

AUD/USD chart - Trading View 

• AUD/USD is trading 0.16% lower on the day at 0.6932 at 0335 GMT.
   
• The pair has hit fresh 4 1/2 month lows on poor Chinese factory and consumer spending data.
   
• The consumer spending, as represented by retail sales, rose 7.2% in April, missing the expected rise of 8.6%.
   
• Meanwhile, industrial production rose 5.4% in April, having registered 8.5% growth in March, missing expectations for a print of 6.5%. 
   
• Price action has slipped below 61.8% Fib, momentum highly bearish, scope for further downside.
   
• Next major bear target lies at 0.6890 (trendline) ahead of 0.6862 (78.6% Fib). 
   
• 5-DMA is immediate resistance at 0.6961. Break above eyes 21-EMA at 0.7018. Bearish invalidation only above 200-DMA.

Support levels - 0.6890 (trendline), 0.6862 (78.6% Fib), 0.68 (88.6% Fib)

Resistance levels - 0.6961 (5-DMA), 0.7018 (21-EMA), 0.7026 (20-DMA)

Recommendation: Stay short on upticks, SL: 0.6961 (5-DMA), TP: 0.6890/ 0.6860/ 0.68

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.