ASX 200 Technical Analysis: Range-Bound ahead of China Trade Data
- ASX 200 Strategy: Trade the range or speculation according to China’s data release
- Trade balance, imports, exports in USD term are slated for Tuesday morning local time
- Support levels: 23.6% Fibonacci at 5,078.1, 4,979.2, Sept-Nov support at 4,918.4
The ASX 200 opened up 1.3 percent today yet quickly cooled down to the middle of its range. A multi-top and resistance at 5,305 continues to cap the topside. The downside is populated with support levels at 5,078.1 (23.6% Fibonacci), 4,979.2, then 4,918.4 (September-November support).
Downward momentum persists although choppy trades rather than one-sided direction should be expected. ASX 200 will likely stay range-bound, before China’s trade data give it and Asian equities some sense of direction.
Range traders and short-term traders may discover speculative opportunities related to the data, which is provisioned for Tuesday morning local time, in CNY then in USD. Good data will support Asian equities and may send ASX to test multi-top resistance. While bad data could drag it down toward one of the support levels. Overall, the index remains range-bound.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.