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.

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
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • South Korean Vice Finance Minister Kim Yong-Beom: South Korean stock market volatility may expand. Recent Won gains may be due to Chinese Yuan's rise -BBG
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/4zDmzLQZ3j
  • #EURUSD Selloff to Accelerate? Biden-Trump Race for Florida Tightens - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/09/23/EURUSD-Selloff-to-Accelerate-Biden-Trump-Race-for-Florida-Tightens.html
  • $AUDUSD has recorded 4 consecutive down-days for the first time since mid-June, with price collapsing below the 61.8% Fib to support at the June high (0.7064) The last time $AUDUSD recorded losses for five days in a row was during the #Coronavirus Crash in March $AUD https://t.co/RZZ5SGRMnJ
  • 🇳🇿 Balance of Trade (AUG) Actual: N$-353M Previous: N$447M https://www.dailyfx.com/economic-calendar#2020-09-23
  • Heads Up:🇳🇿 Balance of Trade (AUG) due at 22:45 GMT (15min) Previous: N$282M https://www.dailyfx.com/economic-calendar#2020-09-23
  • Could #CrudeOil prices be readying to resume the former uptrend? Or will prices extend losses ahead? #WTI has lately been trading within a Symmetrical Triangle chart pattern Learn more about this formation here - https://www.dailyfx.com/education/technical-analysis-chart-patterns/triangle-pattern.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/g9UlHCePF1
  • Australian Dollar has broken parallel support and remains at risk for further losses within the broader June uptrend. Get your $AUDUSD technical analysis from @MBForex here:https://t.co/gTmlLX5t06 https://t.co/GfEixh5aoP
  • Update on #Cryptocurrencies #BITCOIN +0.27% #BITCOINCASH +0.49% #ETHEREUM +0.21% #RIPPLE +0.49% #LITECOIN +0.38%
  • The Nasdaq 100 just pulled back near an important area of big-picture support via the top of the decade-long channel it left behind back in July. Get your #Nasdaq technical analysis from @PaulRobinsonFX here:https://t.co/XhipuEMhyN https://t.co/BhSnsxU4IJ
ASX 200 Technical Analysis: 2017 Highs Still Very Much In Sight

ASX 200 Technical Analysis: 2017 Highs Still Very Much In Sight

2017-10-30 00:55:00
David Cottle, Analyst
Share:

Talking Points:

  • The ASX 200 seems to have stalled
  • But there’s no sign of panic and many are clearly happy to hold the index at these levels
  • Consolidation should bring a fresh try at the year’s peak

Just getting started in the trading world? Our beginners’ guide is here to help

The ASX 200 has broken impressively out of the narrow 150-point range which imprisoned it from early May until the middle of this month.

However, despite leaving that ‘super range’ some way behind, the Australian equity benchmark’s vigour has faded short of 2017’s two-year high. That was the 5961 of May 1, some 220 points above current levels.

ASX 200 Technical Analysis: 2017 Highs Still Very Much In Sight

Can the index get back up there and, possibly, do even better before the year bows out?

Well, it remains quite comfortably within the uptrend channel formed on October 13 when the old range was broken. However, the downside of that channel is now bounded only by one intraday low, that of October 27. And that day provided investors with an unusually wide range, so it may be a mistake to put too much emphasis on it as support.

ASX 200 Technical Analysis: 2017 Highs Still Very Much In Sight

An uptrend channel drawn instead from October 11 offers us more valid test points and here we can see a more decisive rejection.

ASX 200 Technical Analysis: 2017 Highs Still Very Much In Sight

But here again the facts are inconclusive. The index has spent the last five trading sessions below that channel but, even so, it has hardly collapsed. Indeed, daily trade has been remarkably steady at what remains a pretty elevated level by 2017 standards. If many investors yearn to bank their gains at this point, despairing of more, it’s hard to see what they are waiting for.

The case could be made that the ASX is now consolidating around its current levels. This makes some sense as its own Relative Strength Index is retreating from an extremely overbought position to something perhaps a little more sustainable. Note that overbuying has been notable by its absence for much of this year and that extremes such as we have seen in the last two weeks have no parallel since January.

The moving averages still tell a bullish story with both the 20-day and the 50-day having crossed above their 100-day counterpart in the last two weeks.

Care is always warranted if an uptrend shows signs of petering out, of course. But if the ASX managed to hold on in its current range then another push higher could well be in the cards once momentum shifts back toward a more neutral point.

More pronounced falls could find support at 5867.9 and 5824.1. Those levels represent the respective 76.4% and 61.8% Fibonacci retracements of the up move from the lows of October 5.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES