FxWirePro: AUD/USD holds 20-DMA support, weakness only on break below

• AUD/USD holds 20-DMA support at 0.7911, we see weakness only on break below.
   
• Aussie was boosted by upbeat Australia’s business confidence data which printed at 12 vs previous 9.
   
• China's poor trade data kept upside limited. Chinese July trade data showed a big miss on imports and exports.
   
• Imports rose 11.0% v.s 18.0% expected and 17.2% last. Exports were up 7.2% also below forecasts at 11.0% and 11.3% last.
   
• AUD/USD capped at 5-DMA, the pair has slipped lower to currently trade at 0.7921.
   
• Stochs and MACD support downside, while RSI seems flat with neutral bias.
   
• Downside finds strong support by 20-DMA at 0.7911, we see weakness on decisive break below.
   
• Break below 0.79 could see drag lower. Scope then for test of 0.78 level (38.2% Fib).
   
• On the upside, major resistance seen at weekly 200-SMA at 0.7992. Resumption of upside only on close above.

Support levels - 0.7911 (20-DMA), 0.7902 (23.6% Fib retrace of 0.73728 to 0.80656 rally), 0.7875 (July 21 low), 0.7801 (38.2% Fib)

Resistance levels - 0.7935 (5-DMA), 0.7992 (weekly 200-SMA), 0.80

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-slips-below-5-DMA-Aussie-ignores-strong-Australia-housing-data-bias-lower-stay-short-833063) has hit TP1.

Recommendation: We see further downside only on break below 20-DMA.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -14.8597 (Neutral), while Hourly USD Spot Index was at 54.6025 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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