AUS200 Technical Analysis: Caution Ahead of December, August Lows
- 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.