AUD/USD Outlook: Better Than Expected China’s Data Sidelined Bears But Risk Of Further Weakness Exists

Technical analysis of Forex market

The Australian dollar ticks higher on Friday, as traders booked profits from strong fall of past two days.

Better than expected China’s Manufacturing data (Feb Manufacturing PMI 49.9 vs 48.5 f/c and 48.3 in Jan) sidelined bears, but recovery attempts are still limited.

Daily studies are overall bearish, but strengthening momentum partially offsets negative tone and keeps the price above key supports at 0.7070/54, violation of which would spark stronger acceleration lower.

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A cluster of daily MA’s between 0.7129 and 0.7163 marks strong barrier and only sustained break higher would neutralize bearish existing bearish threats.

Res: 0.7129, 0.7145, 0.7163, 0.7203
Sup: 0.7084, 0.7070, 0.7054, 0.7000

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