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
Bearish
Oil - US Crude
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
Wall Street
Mixed
Gold
Bearish
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • another nasty week in Cable $GBPUSD but most of that sell-off was Monday and Tuesday, after which support came into play. 2712 has now helped to hold the lows for three (going on four) days - even as $USD rally has continued https://t.co/kKURzmx61S https://t.co/eHZZ9rZC9X
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: -0.32% Silver: -0.93% Oil - US Crude: -1.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fdLE2SYbFA
  • While risks may be starting to skew to the upside in Brexit negotiations, GBP/USD continues to trade in choppy fashion, with pullbacks finding support at 1.2720-30. Get your $GBPUSD market update from @JMcQueenFX here:https://t.co/TOrUJKapR1 https://t.co/txDbUikOFZ
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.21% US 500: -0.30% Wall Street: -0.50% France 40: -1.37% Germany 30: -1.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/eOrhf8Ozhy
  • Heads Up:🇺🇸 Fed Williams Speech due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-25
  • 🇺🇸 Durable Goods Orders Ex Transp MoM (AUG) Actual: 0.4% Expected: 1.2% Previous: 2.4% https://www.dailyfx.com/economic-calendar#2020-09-25
  • 🇺🇸 Durable Goods Orders MoM (AUG) Actual: 0.4% Expected: 1.5% Previous: 11.2% https://www.dailyfx.com/economic-calendar#2020-09-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.29%, while traders in EUR/GBP are at opposite extremes with 64.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Pr6fmzDXyZ
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.07% 🇬🇧GBP: -0.07% 🇯🇵JPY: -0.08% 🇨🇭CHF: -0.14% 🇦🇺AUD: -0.22% 🇪🇺EUR: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vRMbDk8nMT
  • Heads Up:🇺🇸 Durable Goods Orders Ex Transp MoM (AUG) due at 12:30 GMT (15min) Expected: 1.2% Previous: 2.4% https://www.dailyfx.com/economic-calendar#2020-09-25
S&P/ASX 200 Technical Analysis: Rally to Resume After Pullback?

S&P/ASX 200 Technical Analysis: Rally to Resume After Pullback?

2017-11-14 03:00:00
David Cottle, Analyst
Share:

Talking Points:

  • The ASX 200 has raced up to new 10-year highs
  • However, the process has been rapid and exhausting
  • Now a short-term uptrend is under threat but this could be the measured consolidation bulls will have hoped for

New to all this financial market trading? The free DailyFX guide is right here and it is all yours.

The ASX 200 has had a fabulous run higher but has arguably long needed a little pause for reflection.

Could it now be getting one? Very probably.

November 7’s push above the psychologically notable 6,000 level took the index into highs not seen for ten-years. This up-move came in concert with gains for global indexes and after this year’s long parade of record Wall Street highs. However, the push also came at the tail end of a febrile, month-long run up which had seen the index become quite severely overbought.

It is now testing the lower boundary of a short-term uptrend channel which has been just about in place since October 20. I say “just about” because the channel has already been penetrated to the downside once, on October 27. That day saw an odd trading session in which the ASX closed about where it opened despite trading a wide range. It’s possible that the index should really have begun to consolidate that day and that the push higher since has lacked much of the bullish conviction which preceded it.

S&P/ASX 200 Technical Analysis: Rally to Resume After Pullback?

That’s not to say of course that anything more sinister need be under way, or that further, sharper falls need necessarily be feared. At current levels the ASX is within a whisker of the first, 23.6% Fibonacci retracement of its climb from October 4.

It’s reasonable to suppose that a much-needed consolidation is in place which will find support between here and the second retracement level. That comes in at 5899.0.

S&P/ASX 200 Technical Analysis: Rally to Resume After Pullback?

If the index slides below that level, then the bulls may find themselves with work to do if the entirety of that climb is not to come under question. A lot of near-term support would by then have given way.

Those bulls have got a a task on their hands anyway. They need to recapture that 6,000 level and make it a platform for further gains. Another failure to do will raise the risk of a bearish, “double-top” formation but, as things stand, consolidation and a further push higher looks like the most likely base case.

Right now the index needs to close above the 5952 level on a daily basis to keep its short-term uptrend on the rails. Watch that level carefully as Tuesday’s trading winds down.

--- 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