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. See our updated Privacy Policy here.

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
GBP/USD
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
More View more
Real Time News
  • RT @FxWestwater: Australian Dollar Forecast: $AUDUSD Action May Swing on Chinese Industrial Profits Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/26/Australian-Dollar-Forecast-AUDUSD-Action-May-Swing-on-Chinese-Industrial-Profits.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://…
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/YTdM3KVtUk
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/Bnih4YvTdg
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
ASX 200 Technical Analysis: Range Smashed, Next Move in Balance

ASX 200 Technical Analysis: Range Smashed, Next Move in Balance

David Cottle, Analyst

Talking Points:

  • The ASX 200 saw four months’ gains wiped out by this week’s falls
  • A base has emerged at a key retracement level
  • But it’s too early to be certain that it can hold

Are you new to financial market trading? Take a look at the free DailyFX trading guides!

The ASX 200 has been rudely bounced by this week’s global equity slide out of the trading rang which had formerly endured since January 9.

Tuesday’s 179-point fall was the worse one-day showing since September, 2016, with more than four months of gains erased in the three days between Friday of last week and Tuesday of this.

ASX 200 Technical Analysis: Range Smashed, Next Move in Balance

It also pushed the index decisively below the psychologically crucial 6000-point mark. The index had held above that point on a daily close basis since December 7, with the exception of January 30’s finishing level which took it just a whisker below.

Bulls will want to get that 6000 point back into play as soon as possible but it might be a mistake on their part to concentrate too much on this week’s sharp falls. That’s because, sadly for those bulls, the index was already in a bit of trouble before they made their impact.

The long, significant uptrend channel from October 27 started to run into trouble in mid-January. The ASX traded more or less exactly along the channel’s lower uptrend boundary from January 16-29 befor slipping out of it on January 30.

ASX 200 Technical Analysis: Range Smashed, Next Move in Balance

Now that lower bound lies some 200 points below current market pricing and it looks like a very big ask to get the index back on that track anytime soon.

For now the index seems to have found support at 5835.4 on a daily-close basis. That’s the 61.8% Fibonacci retracement of the long climb from October 2017’s lows to the highs of early January. There appears to be some attempt to build a base in this region but the daily closes of the last couple of sessions simply don’t offer us much in the way of clues as to how successful this will be. The index has recovered a little and looks less oversold than it did but, again, momentum cues are not shouting anything obvious.

The uncommitted could be well advised to watch how the next couple of days’ trading plays out before getting involved. If current levels hold then the bulls have a platform on which to build as they try to offset this week’s dramatic falls. However, if they don’t then the entirety of the recent climb could come under threat. That would put focus on the mid-5600s at which support should at least be reasonably strong.

--- Written by David Cottle, DailyFX Research

Contact and follow David via Twitter on @DavidCottleFX or get in touch via the comments section below. We’d really love to hear from you.

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

DISCLOSURES