FxWirePro: AUD/USD edges higher tracking jump in Chinese iron-ore futures, upside lacks traction, stay short on rallies

AUD/USD chart on Trading View used for analysis

• AUD/USD is trading at 0.7093 at 0440 GMT after hitting session highs at 0.7107.
   
• A jump in the Chinese iron-ore futures is seen as the main catalyst behind the latest uptick in the AUD.
   
• The upmove does not have a strong backing from technicals, bias reamins bearish.
   
• Also, trade tensions continue between U.S. and China which are likely to keep the antipodeans supressed. 
   
• U.S. President Donald Trump said that he had no plans to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.
   
• We recommend using upticks to go short. Next major support lies at 0.7021 (Oct 2018 low). 
   
• On the upside 200-DMA is stiff resistance and we see bearish invalidation only on break above.

Support levels - 0.7055 (Lower BB), 0.7021 (Oct 2018 low)

Resistance levels - 0.7123 (5-DMA), 0.7156 (21-EMA)

Recommendation: Good to stay short on rallies, SL: 0.7284, TP: 0.7055/ 0.7020

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