AUS 200 Technical Analysis: Welcomed Retracement above Support
- AUS 200 Strategy: Small dip buying if it holds out above 4754 support
- Reduced threat of a decline to 2013 levels
- Sideways mode is expected until the week ends
AUS 200 made a welcomed retracement up above the 4754 support level and two-year low. Yesterday’s close above this probably turned the tide, as we outlined. The best scenario from here on is sideways trading until the week ends. A full return of Asia markets next week will add more dimensions and support two-way trading in the index.
The threat of declines is not ruled out totally, given weak downside bias in momentum signals. Dip buyers and investors with long positions should keep a close watch of support level. At top, 4918.4 comes as immediate resistance, with 5074 firm resistance above head.
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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.