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FxWirePro: AUD/USD holds above 200-DMA, Aussies slightly bid on upbeat trade data

  • AUD/USD pared dismal Australia GDP-led losses, edges higher from session lows at 0.7772 to close above 0.78 handle on Wednesday's trade.
     
  • The pair was supported higher by renewed US Dollar weakness, led by reviving fears of a global trade war.
     
  • Data released earlier today showed Australia trade balance for January posted a surplus of AUD 1055 million, far wider than the AUD 300 million estimate. 
     
  • The major continues trade in a narrow range, but holds above .78 handle and strong support at 110-EMA at 0.7813.
     
  • Technical indicators are biased neutral. Upside remains capped at 20-DMA which is stiff resistance at 0.7837. 
     
  • Break out at 20-DMA could see further upside. Scope then for test of 0.7893 (Feb 26 high).
     
  • Focus now on China trade data for further impetus. 

Support levels - 0.7818 (cloud base), 0.7813 (110-EMA), 0.7801 (5-DMA)

Resistance levels - 0.7837 (20-DMA), 0.7893 (Feb 26 high), 0.7886 (23.6% Fib)

Recommendation: Watch out for break above 20-DMA to go long, target 0.7890/ 0.7935/ 0.7985.

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