FxWirePro: AUD/USD rangebound around 0.7150, escalating US-China tensions cap upside

AUD/USD chart - Trading View 

AUD/USD was trading rangebound on the day at 0.7150 at around 04:45 GMT. 

Poor data weigh on price action. Australian NAB Business Confidence slipped below -8 forecast and -12 prior (revised) to -15 in Q2 2020.

Escalating US-China tensions cap upside in the pair, but technical bias is strongly bullish, scope for upside resumption.

The major is trading 2.26% higher for the week till date and is set to extend gains into the next week.

The surge in precious metals adds to the pair’s strength. Price action has broken above weekly cloud and bulls are on track to test 200W MA at 0.7261.

Technical bias is strongly bullish. Momentum with the bulls. RSI strong above 60. MACD and ADX support gains.

Major Support Levels: 0.6989 (21-EMA), 0.6686 (200-DMA)

Major Resistance Levels: 0.7131 (61.8% Fib), 0.7261 (200W MA)

Summary: Technical studies support further gains in the pair. Minor weakness cannot be ruled out on account of overbought oscillators on the daily charts. Scope for test of 200W MA at 0.7261. Failure to hold above 21-EMA could see some weakness. Shift in trend only below 200-DMA.