ASX200 in No-Man’s Land as AUD/USD Eyes off 0.70 Again

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ASX200 in No-Man’s Land as AUD/USD Eyes off 0.70 Again

ASX200

The ASX200 has done well of late to distance itself and move away from the key 5000 level however it remains well within reach. This level continues to loom and is poised to play a role again should the index retreat further.

Should the index continues its rally higher then it is likely to run into more potential congestion around the key 5500 level which is looming above like a dark cloud.

This has resulted in the ASX200 index presently sitting in some no-man’s land between two key levels of 5000 and 5500, where it has sat for the last few weeks. At the same time in the last few weeks, the index volatility has decreased and returned back to normal levels below 1.5%, indicating that the previous irrational behaviour has declined.  Click on the image below …

XJO_Volatility_20151105

Two of the banks look to be entering some treacherous territory as ANZ and NAB are all teasing multi-year lows, around $26.50 and $29.50 respectively. On the other side, Macquarie Bank looks to be heading higher and is close to threatening its highs around $85.

In a positive note, Scentre Group has moved through to a new all time high at $4.20 which is significant in the current climate. Likewise Westfield has made a recent push to break through the resistance level at $10 and potentially threaten its 2015 highs.

Woolworths and Origin Energy remain in the bad books loitering near multi year lows.

In the industry sectors, Industrials and Utilities continue to lead the way in an otherwise red market.

AUD/USD

Just like the ASX200 index, the AUD/USD has done a great job of moving higher away from a significant level (70 cents) in the last month or so. It has however been sold off strongly in the last couple of weeks days and is now confronting solid resistance from another key level at 0.72.

This level has been significant since July providing both support and resistance. Should the resistance hold up, then the 70 cents level is likely to be visited again shortly.

 

Stuart McPhee
Stuart McPhee
Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.