FxWirePro: AUD/USD holds support at 0.70 handle, break above 5-DMA could see minor upside

AUD/USD chart - Trading View 

• AUD/USD is trading in a narrow range on the day, at 0.7041 at 0515 GMT.
   
• The pair has paused downside at 0.70 handle, we see weakness on break below.
   
• Poor economic data releases from Australia that have confirmed RBA's neutral-dovish bias.
   
• Also, no breakthrough between US/China trade talks keeps the antipodeans depressed.
   
• Further, China’s February trade figures surprised the market on the downside by a big margin, casting doubts on the economy's health, another dent to the AUD.
   
• Stochastics RSI indicator is at oversold levels, suggesting some pullback in the pair.
   
• Major trend in the pair is bearish and recovery attempts remain capped at 5-DMA.
   
• Break above 5-DMA could see upside till 21-EMA at 0.7096. Bearish invalidation only above 200-DMA.
   
• Break below 0.70 handle will see resumption on weakness. Next major support below 0.70 lies at 0.6907 (Sept 2015 low).

Support levels - 0.6907 (Sept 2015 low), 0.6827 (Jan 2016 low), 0.6744 (Jan 2019 low)

Resistance levels - 0.7069 (cloud base), 0.7103 (20-DMA), 0.7130 (55-EMA)

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