FxWirePro: AUD/USD fails to hold China PMI led gains, slips below 5-DMA

• AUD/USD ran into offers and slipped sharply from session highs at 0.7699 reached post upbeat China PMI data.
   
• The pair has retraced most of the gains and has slipped below 5-DMA at 0.7677, but downside seems capped on a weak USD.
   
• Trump failed once again to offer details into his fiscal spending plans and tax reforms during his Congressional address, leaving markets unimpressed.
   
• The greenback manages to hold onto recovery gains against most of its majors which could limit downside in the pair.
   
• Moving averages are flattenning out, bearish RSI divergence raises scope for downside in the pair.
   
• We see reversal in trend on decisive break below 20-DMA at 0.7669. Test of 100-DMA at 0.7512 then likely.
   
• On the flipside, breakout above 0.77 could see test of trendline resistance at 0.7745 and then 0.7778 (Nov 8 high).

Support levels - 0.7667 (20-DMA), 0.7603 (23.6% Fib retrace of 0.7161 to 0.7740 rally), 0.7550 (Feb 1st low)

Resistance levels - 0.7677 (5-DMA), 0.77, 0.7725 (Trendline), 0.7778 (Nov 8 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral                Neutral       
4H          Bearish                Neutral       
1D          Neutral                Neutral        
1W         Bullish                 Neutral    

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 29.5469 (Neutral), while Hourly USD Spot Index was at 53.6883 (Slightly bullish) at 0310 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.