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. See our updated Privacy Policy here.

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
More View more
AUS200 Technical Analysis: Recovery Contingent on Trend Line

AUS200 Technical Analysis: Recovery Contingent on Trend Line

Nathalie Huynh,

Talking Points:

  • AUS 200 Strategy: Prepare for a recovery though volatility remains high
  • Momentum upturn provides a good indication
  • Triple bottom at 4918.4 limits development on the downside

AUS 200shows early signs of a recovery toward the previous support trend line, at 5008 today. On the downside, a triple bottom and support at 4918 limits lower extensions. Whether the index can return to the area above trend line will be critical to a continued rebound.

The bulls and range traders should closely watch the current upturn in momentum signals, and whether that continues into next week. Topside bias prevails for now.

High volatility dominates regional equity indices prior to U.S. Non-farm Payrolls data today. As such, the AUS 200 may experience more choppy trades before a clear trend emerges. In the meantime, investors can stay put or play short-term opportunities with small target.

Need a hand to start trading:Free Guides

Want to read market’s momentum: Speculative Sentiment Index

AUS200 Technical Analysis: Recovery Contingent on Trend Line

Daily Chart - Created Using FXCM Marketscope

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.

DISCLOSURES