AUS 200 Technical Analysis: Consolidation Replaces Rebound
- AUS 200 Strategy: Stay still through mixed action. Stops trail support levels
- December’s low of 4859.9 is back in focus, followed by 4763
- Unchanged momentum is a hint for consolidation rather than downturn
AUS 200 touched down on 4859.9 support level with a sell-off at early Asia. Momentum has not changed course and a mild recovery in regional stocks today hint at possible consolidation ahead. Investors could stay put throughout these mixed actions, provided support holds.
Any break of December’s low and support level may trigger margin calls / stop loss - that accelerate the slide. Hence the bulls should closely watch this level for signs to get out altogether. Support level below that is 2-year low of 4763.
Momentum direction has not averted. There is still hope for the bulls and dip buyers, more so if prices hold above support throughout today.
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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.