ASX200 Making a Move – Market Update

ASX200

In the last few days the ASX200 has finally made a move and has broken down through the key 5800 level.  If it is to remain below the 5800 level for several days, this level is likely to provide some resistance should the index revisit it in the near future.  This of course makes the 6000 level even further away as there would now be another layer for the index to move through before it can retest the resistance at 6000.

As I mentioned previously, the current price action over the last month is not too dissimilar to what we saw in January / February when the index met resistance at 5800 and found support at 5600 – with that in mind, who is to say the index doesn’t continue to trade within this narrow range for several weeks still.

The all time highs / lows reading this week is 1 / 3.  The only stock in the top 500 that achieved a new all time high this week is Phileo (ASX Code: PHI).  The 3 stocks that achieved all time lows are Shine, Surfstitch and Ten Network.

Daily chart of S&P/ASX200 Index | Image from MetaStock

AUD/USD

The last month or so hasn’t been a great time for the Australian dollar as it has drifted down to be trading at three month lows around 0.7350.   Similar to the index, it is almost duplicating the price action from a few months ago (over New Years) when it dropped through 0.75 but rallied over the next few weeks back up to resistance at 0.75 before succumbing to supply and moving down to a six month low around 0.7150.  Consequently the next obvious key level is around 0.7150 where it found solid support around New Years but also around 12 months ago pushing the currency pair higher again back to 0.77 on both occasions.

As we know the Australian dollar has spent considerable time in the last 12 months trading between the two key levels of 0.75 and 0.77, however you could easily picture it drifting lower before returning to that range again.

As I type this, it is currently trading around 0.7435.

Daily chart of AUDUSD | Image from MetaStock

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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.