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AUS 200 Technical Analysis: Shy Away from Resistance

AUS 200 Technical Analysis: Shy Away from Resistance

2016-02-23 03:56:00
Nathalie Huynh,
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Talking Points:

  • AUS 200 Strategy: Exit at repeated failures to break 5074 resistance
  • Momentum turns flat and index is stuck in tight range 4918.4-5074
  • Breach at either boundary would signal upcoming direction

The AUS 200 has so far paused below 5074 resistance level, the last hurdle on its way back into August-January range trade. Flat momentum signal indicates that an upturn resumption may be long coming. There are not hints on downside development either. Such renders the index in a tight range above 4918.4 level.

Range traders with long positions may look to take profit if the index repeatedly fails to challenge resistance, then possibly re-enter above the level in case of a breach. On the other hand, opportunity to sell within the range is limited, given a lackluster of downside signals.

Sideways movement will likely persist until later this week when G20 meeting spurs position adjustments again.

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AUS 200 Technical Analysis: Shy Away from Resistance

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.

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