News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Heads Up:🇯🇵 Capital Spending YoY (Q4) due at 23:50 GMT (15min) Previous: -10.6% https://www.dailyfx.com/economic-calendar#2021-03-01
  • 🇯🇵 Unemployment Rate (JAN) Actual: 2.9% Expected: 3% Previous: 2.9% https://www.dailyfx.com/economic-calendar#2021-03-01
  • The US Dollar is trying to break higher versus ASEAN currencies. The Singapore Dollar, Philippine Peso, Thai Baht and Indonesian Rupiah are under pressure. Will follow-through last? Find out from @ddubrovskyFX here:https://t.co/JOWG9q01q0 https://t.co/onzZoGNQf6
  • Heads Up:🇯🇵 Unemployment Rate (JAN) due at 23:30 GMT (15min) Expected: 3% Previous: 2.9% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Retail CFD traders (via IG) have flipped net long on the $SPX for the first time since the Pandemic low almost a year ago: https://t.co/yWRLZk5mym
  • ...also for those without kids or are not inherently young at heart, March 2nd is Dr. Seuss's birthday.
  • The price of gold struggles to retain the rebound from the start of the week as longer-dated US Treasury yields hold above pre-pandemic levels. Get your $XAUSD market update from @DavidJSong here:https://t.co/zE7NafvfTq https://t.co/4BxMT0iyi1
  • Uh oh. Another financial product/meme pivot. I think Elon is just a BTD kind of guy who is in tune with the social trading trends and wants to bring the retail crowd along with him. Would fit the essence of Tesla and Space X https://t.co/EP9zj1rXzU
  • Canadian #Dollar Forecast: $USDCAD Bears Fail at Support- March Levels - https://t.co/XkyFns8odx https://t.co/8Q4Tu0viz0
  • I feel the LaserEyes trend is a more effective social spread because of the visual impact. Kind of disappointed the community hasn't gotten a more tangible visual cue for BTD / BTFD. Or maybe there is one and I'm just behind the trend....which happens a lot recently
ASX 200 Technical Analyis: Escape Velocity From 6000 Needed

ASX 200 Technical Analyis: Escape Velocity From 6000 Needed

David Cottle, Analyst

Talking Points:

  • The ASX 200 remains near its highs for 2017
  • It looks relaxed at the 6000 level which had previously stymied it
  • But the bulls need to consolidate here before they can take the index higher

Get trading tips and join us for live coverage of all significant economic data at the DailyFX Webinars

The ASX 200 heads into a new year looking comfortable close to its highs for the old one.

Its basic moving averages are in good order too and neither they nor the Relative Strength Index suggest that a turnaround is at all imminent. This is not an index that looks dangerously overbought or oversold, even at relatively elevated levels. And yet the bulls still can’t seem to push on far from that psychologically interesting 6000 level, although the index remains just above it. It has certainly looked more comfortable close to that point since October than it has at any point for about ten years. But it just can’t make much progress.

ASX 200 Technical Analyis: Escape Velocity From 6000 Needed

In one sense that is not surprising. 6000 has not represented as safe buying spot for the ASX for many years.

Is that likely to change in the early part of 2018? Well. Maybe. Clearly the holidays are still casting some shadow over ASX trade, much as they are over other asset classes. But something like normal service should be resumed next week. How will it find the ASX when it does?

The index clearly remains in some sort of uptrend and I have found a channel here which looks quite interesting. It is rooted in the trading action of October 27. That was an odd session for the Australian benchmark which saw an unusually wide trading range by the standards of the month in question, but very little difference between the opening and closing levels.

Friday October 27.

ASX 200 Technical Analyis: Escape Velocity From 6000 Needed

Admittedly this uptrend channel treats early November’s rise as at least partially spurious. But in so doing so it finds considerable validation elsewhere so that looks like a trade-off worth the making. Early December’s lows become convincing downside validation and the recent highs form an upside test. Obviously some caution is warranted once trading gets back to full vigour.

But this channel suggests that another test of the 6,100 level could come quite soon in 2018 and as such is probably worth watching for near-term direction. If the bulls do have any appetite to push on much higher than the 6,000 threshold then this channel’s resilience could be a handy first sign.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES