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
More View more
Real Time News
  • RT @IMFNews: What is an SDR? Learn more in this short video. https://t.co/86O7k00sWZ
  • AUD/USD Price Outlook: Australian Dollar Awaits RBA Decision Link to Analysis - https://www.dailyfx.com/forex/market_alert/2021/08/02/audusd-price-outlook-australian-dollar-awaits-rba-decision.html $AUD $AUDUSD #Trading https://t.co/R4Lpopvqjp
  • RT @RichDvorakFX: @tradingview $MOVE - reflects implied volatility for US Treasury bonds over the next 30 days. https://t.co/2aDSX8eGEJ
  • USD/MXN trades directionless, oscillating between small gains and losses, near the 20.15 area. Get your $USDMXN market update from @DColmanFX here:https://t.co/FFr3rlXSuX https://t.co/GBCTbvdsN2
  • EUR/GBP looking to retest the 50-day moving average just below 0.8600 $EURGBP https://t.co/LvXrtCrRyz
  • USD/JPY appears to be on track to test the July low (109.06) following the Federal Reserve interest rate decision as longer-dated US Treasury yields come back under pressure. Get your $USDJPY marketing update from @DavidJSong here:https://t.co/VXdZGAfWHh https://t.co/HpKaWK1VC4
  • RBNZ: We will soon begin consulting on ways to tighten mortgage lending standards More below: https://t.co/XVbcd0uVPU $NZD
  • RT @BrendanFaganFx: USD/JPY Under Pressure Following Comments from Fed's Waller $USDJPY #FOMC #FederalReserve #trading Link: https://t.c…
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.34% 🇦🇺AUD: 0.26% 🇪🇺EUR: 0.03% 🇳🇿NZD: -0.00% 🇬🇧GBP: -0.14% 🇨🇦CAD: -0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/VpNM0on6b3
  • Bitcoin declines heavily into the close of the US session, now trading below $39,000 $BTCUSD https://t.co/o32jeeb0Eg
ASX 200 Technical Analysis: Range Break Could Come Quite Soon

ASX 200 Technical Analysis: Range Break Could Come Quite Soon

David Cottle, Analyst

ASX 200 Technical Analysis Talking Points:

  • The ASX 200 has been range trading since mid-month
  • The last time this range broke heavy falls followed
  • A repeat is unlikely but this week could bring proof either way

Get live, interactive coverage of all major Australian economic data at the DailyFX Webinars

The ASX 200 has broken below the uptrend channel which previously bounded trade between late December’s lows and the peaks of mid-January.

Still, despite that break the Sydney stock benchmark has not so far fallen very far and, indeed, seems to have settled back into a familiar range.

ASX 200 Technical Analysis: Range Break Could Come Quite Soon

Its current trading band comes in between 5823 and 5936. That was also the daily chart range between October 30 and November 13 last year. On that occasion the range broke to the downside, presaging a sharp fall down to those December lows.

This time, however, much may depend on the fundamental news flow with which this week is replete. If the US Federal Reserve sounds more cautious about future interest rate rises, then stock markets worldwide could get at least a knee jerk boost. Signs of rapprochement on trade when Chinese officials meet their US counterparts in Washington could have much the same effect. Then there’s Australian inflation data. The weakness expected to be seen here on Wednesday might also give domestic stocks a lift on the thesis that interest rates will remain low, although the heavily weighted banking sector might well dislike such an outcome and act as a drag.

In any case the bulls may well find progress slow, even if they can break the range top. The next clear upside target would be some way above the market at 6144. This was where October’s steep falls began and it will probably be a slow slog back up to that level, one providing those bulls with many tests of nerve.

If the range breaks to the downside then meanwhile then its first support looks likely to come in at 5785.0. That is the first Fibonacci retracement level of the rise up to January’s peaks from the lows of late December.

Resources for Traders

Whether you are new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES