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
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Equities have managed to start the new month on the front foot as bond yields are taking a breather from their rapid surge over the last few weeks. DAX 30 bulls aim towards the 14,000 mark. Get your #DAX market update from @HathornSabin here:https://t.co/E7CYIM0KQC https://t.co/bnFyQfXLP6
  • ECB President Lagarde: - Pandemic is still heavily weighing on European economies - ECB will do its job to ensure firms and families can access finances needed to weather the storm - They can do so with confidence that financing conditions will not tighten prematurely #ECB $EUR
  • Heads Up:💶 ECB President Lagarde Speech due at 16:10 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-03-01
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.92% 🇨🇦CAD: 0.66% 🇳🇿NZD: 0.62% 🇯🇵JPY: -0.04% 🇪🇺EUR: -0.25% 🇨🇭CHF: -0.65% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/hg9Ce9xspE
  • The FTSE 100 has not been an easy handle lately, a theme that is often the case with this index and its choppy price action. Get your #FTSE market update from @PaulRobinsonFX here:https://t.co/QcIFpL232J https://t.co/nisYpjAFbJ
  • 🇲🇽 Markit Manufacturing PMI (FEB) Actual: 44.2 Previous: 43 https://www.dailyfx.com/economic-calendar#2021-03-01
  • In line with comments from Stournaras last week - ECB should accelerate PEPP purchases - No fundamental justification for a tightening of bond yields at long end - GC Should instruct board at March 11 meeting to fight unwarranted tightening of financing conditions
  • The Dollar is really trying again to spark a meaningful reversal yet again, but the market seems to have hardened its skepticism. I'll be watching this $EURUSD support (100SMA and trendline) closely these next 48 hours https://t.co/D1A5gthGdP
  • Heads Up:🇲🇽 Markit Manufacturing PMI (FEB) due at 15:30 GMT (15min) Previous: 43 https://www.dailyfx.com/economic-calendar#2021-03-01
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Silver: 0.87% Oil - US Crude: 0.72% Gold: 0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/I1pwjTdlEU
ASX 200 Technical Analysis: Uptrend Threatened But Sill Holding

ASX 200 Technical Analysis: Uptrend Threatened But Sill Holding

David Cottle, Analyst

Talking Points:

  • The ASX 200’s uptrend endures
  • But it has been shaken and momentum looks weaker than it did
  • The next couple of trading sessions could be decisive

Get trading hints and join our analysts for live coverage of all the major economic data at the DailyFX Webinars

The ASX 200 is clinging to its uptrend channel but certainly looks weaker technically than it did a week ago.

As you can see from the chart below, January 10 was an interesting day, if not one bulls would much want to revisit. The ASX slipped quite markedly in that session, as did many other Asian bourses. This was puzzling in one important respect- the region had quite a strong Wall Street lead to follow and there was no obvious piece of local bad news to rock the boat.

ASX 200 Technical Analysis: Uptrend Threatened But Sill Holding

But whatever its cause, January 10’s fall has clearly had an effect. It may be yet to completely invalidate the uptrend channel in place since December 6. But it has already given us an intraday foray bellow the channel downside, even if the channel is holding on a daily-close basis.

And, if we zoom in a bit we can see that the latest upside attempt appears to have fallen some way short of the channel top, putting the focus once again on the index’s lower boundary.

ASX 200 Technical Analysis: Uptrend Threatened But Sill Holding

Assuming that downside channel support holds, it may be best to wait a day or two to get the full picture. Monday brings the Martin Luther King Day holiday in the US. This will see both equity and bond markets closed and, probably, some thinning of Asian trade in advance of it.

That support comes in at the 6069 area, perilously close to current levels. The ASX was only 20 points or so above that point at the time of writing (0100 GMT Monday).

However, if we see a decisive break and daily close below the channel then it’s reasonable to assume that the bulls are losing heart- admittedly after a very good run. This need not mean heavy falls. December 29’s close at 6026 was also the intraday low of January 2 and that level may provide some near-term support.

The first Fibonnaci retracement of the remarkable rise from last October’s lows to January’s ten-year highs comes in at 6037.3. The second comes in at 5951.6, although the effects of a decisive fall through the psychologically important 6000 level may render that a tough prop to defend.

But we may be getting ahead of ourselves. The first order of business will be to see whether the current uptrend survives a return to normal US post-holiday trade. And that will have to wait effectively until Wednesday in the Asia Pacific region.

It might be best for the uncommitted to hold off until then.

--- 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