FxWirePro: AUD/USD weakness likely on break below 21-EMA, upbeat China trade data has little impact

AUD/USD chart - Trading View 

AUD/USD trades rangebound on the day, finds strong support at 21-EMA. Break below 21-EMA will see weakness in the pair. Next major support lies at 55-EMA at 0.6776. Violation there raises scope for test of 23.6% Fib at 0.6696. 

China trade data released earlier today flashed upbeat signals, cushioning downside in the pair. June month trade figures from China showed exports and imports came better than the previous +1.4% and -12.7% figures with +4.3% and +6.2% reading respectively. China's iron ore imports hit 33-month high in June which could buoy the commodity currencies. 

National Australia Bank’s (NAB) Business Confidence and Business Conditions numbers for June also beat expectations. NAB Business Conditions recovered from -24 prior and beat -39 forecast at -7, whereas Business Confidence rose beyond -87 expected and -20 previous to +1.

Headlines concerning the coronavirus and Sino-American tussle could impact price action. On the data front, traders look forward to the US inflation data for impetus. 

Major Support Levels: 

S1: 0.6909 (21-EMA) 

S2: 0.6829 (Lower BB)

S3: 0.6776 (55-EMA)

Major Resistance Levels: 

R1: 0.6954 (5-DMA)

R2: 0.6995 (Upper BB)

R3: 0.7064 (June 10th high)

Summary: Major trend in the pair is bullish, but minor trend is turning slightly bearish. Watch out for break below 21-EMA for weakness.