FxWirePro: AUD/USD slightly bid after upbeat China's Caixin Services PMI, major trend bearish

AUD/USD chart on Trading View used for analysis

• Aussie keeps gains after an above-forecast of China services PMI, AUD/USD trades 0.16% higher on the day.
   
• China's Caixin Services PMI clocked in at a surprising 53.1 for the month into September, bettering estimates for a reading of 51.5.
   
• Technical studies are still bearish. Major trend in the pair remains bearish and we see a bearish invalidation only above 55-EMA.
   
• Focus now on Tuesday’s NAB business confidence report and Wednesday's consumer confidence print for further direction.
   
• The yield differential and the burgeoning gap in monetary policy, highlighted by a hawkish Fed and cautious RBA keeps downside pressure on the pair.
   
• Price action extends downside in a sloping channel and next major support lies at channel base at 0.7020.
   
• Break below channel could see accentuation of weakness. 

Support levels - 0.7020 (channel base), 0.6976 (88.6% Fib)

Resistance levels - 0.7094 (5-DMA), 0.71 (78.6% Fib)

Call update: Our has advised a short in our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-retains-bearish-bias-unfazed-by-slightly-better-retail-sales-data-1438989).

Recommendation: We maintain our short call, target 0.7025/ 0.6980.