FxWirePro: AUD/USD finds support at 200-hour SMA, good to go short on break below

AUD/USD chart - Trading View 

AUD/USD Intraday Bias: Bearish

Major Support: 200-hour SMA (0.7058)

Major Resistance: 21-EMA and cloud top

• AUD/USD extends weakness after mixed China data. Aussie barely moved despite the better-than-expected China retail sales data. 
   
• China retail sales rose 8.2 percent y/y in the January-February period as opposed to an expected drop to 8.1 percent from 8.2 percent.  
   
• However, factory activity cooled significantly. China's industrial production in the January-February period increased 5.3 percent, missing the forecast of 5.5 percent year-on-year rise.
   
• An upbeat retail sales release is likely overshadowed by the dismal industrial production figure.
   
• AUD/USD is trading 0.45% lower on the day at 0.7062 at 0635 GMT, intraday bias bearish.
   
• The pair was capped at 21-EMA and daily cloud top resistance at 0.7093. Further upside only on break above.
   
• Major trend in the pair is bearish. Breakout at 200-DMA will negate bearish bias.
   
• Price action is currently holding support at 2-hour 200 SMA at 0.7058, break below will see further downside.

Support levels - 0.7058 (1-hour 200 SMA), 0.70, 0.6988 (Lower BB weekly)

Resistance levels - 0.7093 (21-EMA), 0.7125 (converged 4H 200 SMA and 55-EMA), 0.7168 (110-EMA)

Recommendation: Good to go short on break below 200-hour SMA, target 0.70/ 0.6985

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.