AUS 200 Technical Analysis: Shy Away from Resistance
- 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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--- 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.