AUS 200 Technical Analysis: Consolidation Replaces Downturn
- AUS 200 Strategy: Wait out the consolidation
- The range 4754-5074 firmly contains price action
- Momentum signal offers early hint to upcoming development
The fall in AUS 200 has completed, to be replaced by a consolidation on the lower side of 4918 technical level. Momentum signal offers early hint of a bounce back after strong downward pressure last week.
Range traders who look to take profit upon a descent toward range bottom at 4754 may have to wait out this consolidation period. Bar new development, there is still chance for the index to retrace lower levels and form a double bottom, after its earlier double top at 5074.
Any clean breach above 4918 would spell trouble for the downturn and indicate time to exercise stops. On the downside, 4754 support level holds firm, unchallenged amid recent change in momentum.
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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.