FxWirePro: AUD/USD pauses downside after upbeat China data, bias bearish as long as pair hold below 50-DMA

AUD/USD chart on Trading View used for analysis

• AUD/USD has paused downside and is consolidating previous sessions slump.
   
• Upbeat China official manufacturing and non-manufacturing PMI data is lending support to the Aussie.
   
• Data released earlier today showed China official manufacturing PMI for August printed at 51.3 and the non-manufacturing PMI came in at 54.2, beating forecasts at 51 and 53.8 respectively.
   
• However, escalating US-China trade war could cap the upside in the major. 
   
• Technical bias remains bearish. We see no major signs of reversal and downside intact as long as pair holds below 50-DMA.
   
• Price action rages in downward sloping Wedge and remains capped at 50-DMA which is stiff resistance at 0.7370. Scope for test of Wedge base at 0.7170.
   
• We see bearish invalidation only no breakout at 50-DMA. 

Support levels - 0.7238 (Aug 24 low), 0.7202 (Aug 15 low), 0.7170 (Wedge base)

Resistance levels - 0.7302 (5-DMA), 0.7322 (21-EMA), 0.7366 (50-DMA)

Recommendation: Good to go short on upticks, SL: 0.7322, TP: 0.7240/ 0.72/ 0.7175

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -64.8858 (Neutral), while Hourly USD Spot Index was at -9.44471 (Neutral) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.