AUD/USD chart on Trading View used for analysis
- AUD/USD is trading 0.38% lower on the day at 0.7242 at 0455 GMT.
- The pair is slipping as poor China Caxin PMI data weighs on the antipodeans.
- Data released earlier today showed China's January Caixin PMI printed at 48.3 - the lowest level in nearly three years.
- Weak data stoked fears of a deeper slowdown in the world's second-largest economy, denting the antipodeans.
- Technical indicators do support further upside in the pair and the recent slide is not expected to continue.
- Price action is holding support at 1H 55 EMA and we see scope for major weakness only below 1H 200 SMA.
- On the upside, break above 200-DMA will resume bullish continuation. Scope then for test of 0.7393 (Dec 2018 high).
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-on-track-to-test-200-DMA-upbeat-Chinese-PMI-and-dovish-Fed-support-gains-1491842) has hit target levels.
Recommendation: Book partial profits. watch out for break above 200-DMA for further upside.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
