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AUS200 Technical Analysis: Caution Ahead of December, August Lows

AUS200 Technical Analysis: Caution Ahead of December, August Lows

Nathalie Huynh, Contributor

Talking Points:

  • AUS 200 Strategy: Cautious of lower moves while waiting for rebound
  • Immediate downside risk increased after the sell-off passed 4918.4
  • Support levels: 4861 December low, 4763 August low

AUS 200 hovers over December 14’s low at 4859.9 after it slid past a previous support level at 4918 on Friday. Downside risk has increased along with broad market sentiment, the index trades near today’s low of 4880. Early sign for a momentum rebound has abated.

Those hope to participate in an upward reversal should stay put until signals become clearer, including a failure to break December low. A break on the downside would open up leeway for a contest of August and 2 ½-year low at 4763.

Likewise, bearish traders should stay cautious around these two support levels. Although a rebound in momentum is temporarily halted, signals remain deep in oversold territory hence downward pressure may exhaust at any time.

Losing Money Trading Forex? This Might Be Why.

--- 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.

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