FxWirePro: AUD/USD snaps four-day bearish streak, finds strong support at 200-week MA

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.59% higher on the day at 0.7162 at around 04:40 GMT

Previous Week's High/ Low: 0.7458/ 0.7234

Previous Session's High/ Low: 0.7228/ 0.7118

Fundamental Overview:

News of easing of lockdowns in some major Chinese districts keeps sentiment buoyed, supporting the antipodeans.

On the data front, China’s Industrial Profits grew by 5% during the January-February period, according to the National Statistics Bureau (NBS).

Focus on US GDP data due Thursday. Yearly US GDP is estimated at 1.1%, while the quarterly GDP is seen at 7.2% against the previous release of 7.1%.

Technical Analysis:

- AUD/USD is consolidating break below daily cloud

- Price action is below major moving averages which are trending lower

- 200-week MA is offering strong support at 0.7147, break below required for further downside

- Oversold conditions may see warrant some pullbacks, bias remains bearish

Major Support and Resistance Levels:

Support - 0.7147 (200-week MA), Resistance - 0.7220 (5-DMA)

Summary: AUD/USD recovery lacks traction. Watch for break below 200-week MA for further weakness.