FxWirePro: AUD/USD struggles to hold upbeat NAB survey-led gains, break below cloud to see further downside

AUD/USD chart on Trading View used for analysis

• AUD/USD struggles to hold upbeat NAB survey-led gains, uptick proved to be short-lived.
   
• National Australia Bank's (NAB) business conditions index rose from +2 points in December to +7 in January. 
   
• Meanwhile, the business confidence index improved slightly from +3 points in December to +4 in January.
   
• NAB's business confidence and conditions surprised to the upside, but still remain way below the long-run average.
   
• The major is trading in a major bear trend and upside was rejected at 200-DMA. 
   
• Price is currently holding support at daily cloud and break below will see further weakness.

Support levels - 0.7037 (Lower BB), 0.7021 (Oct 2018 low), 0.70

Resistance levels - 0.7086 (5-DMA), 0.7147 (21-EMA), 0.72

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-edges-higher-tracking-jump-in-Chinese-iron-ore-futures-upside-lacks-traction-stay-short-on-rallies-1496056) is progressing well.

Recommendation: Bias lower, hold for targets.

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