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
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/mAMhWbV6Jy
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/E9ZmJvqO0z
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here: https://t.co/S8UoHzOwFN https://t.co/qI6UZdggvM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/6wxX6oQurn
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/w009tJEQZn
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/2AeO1AdD2M
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/INJz4NSugQ
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZX8cS https://t.co/qdrsi61CN8
ASX 200 & AUD/USD Forecast: Risk Appetite Essential for Continuation

ASX 200 & AUD/USD Forecast: Risk Appetite Essential for Continuation

Peter Hanks, Analyst

AUD/USD & ASX 200 Price Outlook:

  • The ASX 200 pulled back this week as demand for risk assets waned
  • AUD/USD experienced similar price action as the two Aussie-based markets remain largely reliant on economic growth projections and risk appetite
  • With that said, both products may closely mirror broader risk trends as the week progresses

ASX 200 & AUD/USD Forecast: Risk Appetite Essential for Continuation

The Australian Dollar and ASX 200 have recovered considerably from their March lows as investors have seemingly come to terms with the unprecedented threat to the global economy. Still, uncertainty remains and the recent performances of Dow Jones and S&P 500 may suggest another bearish stint lower is on the horizon which would likely work to undermine AUD/USD and the ASX 200 simultaneously. With that in mind, outlining potential areas of support may prove useful should bearishness reemerge in the days ahead.

ASX 200 Price Chart: 4 – Hour Time Frame (February 2020 – April 2020)

ASX 200 daily price chart

In the case of the ASX 200, early assistance may be offered at the nearby Fibonacci level around 5,049 which may have played a role in stalling the decline earlier this week. With the current trading price not far from the first potential level, the Australian equity index could feasibly seek secondary support which may be provided by the low on March 23 around 4,380. Evidently, the ASX 200 is not afforded a lot of room to work with if selling pressure picks up in earnest - not only compared to US indices, but also AUD/USD.

AUD/USD Price Chart: 4 – Hour Time Frame (February 2020 – April 2020)

audusd daily price chart

To that end, AUD/USD might look to enjoy a bounty of technical support below the current spot price. First and foremost is the 61.8% Fibonacci level around 0.6236, followed by a horizontal trendline slightly beneath near 0.6200. Should the two initial levels fail to keep price afloat, subsequent support around the psychologically-significant 0.60 mark may be required.

Forex for Beginners
Forex for Beginners
Recommended by Peter Hanks
Forex for Beginners
Get My Guide

While a retracement lower is far from certain, the two markets are undoubtedly sensitive to risk appetite which appears to be in a fragile state this week. If corporate earnings out of the United States continue to disappoint alongside other measures of economic productivity, investors may look to reduce growth-linked exposure in the form of the ASX 200 and AUD/USD.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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

DISCLOSURES