ASX200’s Support at 5650 Holding – Market Update

ASX200

It was probably a good thing that I went away to the event in California as it gave me a little break from repeating myself. The ASX200 index continues to do very little as it moves between 5650 and the key 5800 level, although it has been closer to the former level more of late. Even the other day at golf, two others in my group were talking about the market and how it is going nowhere. One speculated it is the uncertainty around North Korea, another chimed in with his point of view. I don’t believe it really matters what is causing the market to do what it is doing … it is what it is and we have no control over it.

The all time highs / lows reading this week is 10 / 1. Some of the all time highs include the A2 Milk Company (again), Altium, Breville, and South32. The low is Billabong.

Again, the 10 is a reasonable number considering how the general market is performing.

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

AUD/USD

Whilst earlier this month the Australian dollar made a solid run at the key 0.80 level and in doing so, moved to its highest price in over two years, it has since returned to its prevailing range below 0.80. It has found some recent support around 0.78 and it has bounced off that level a couple of times now in the last couple of months.

The 0.80 level remains key as despite numerous attempts the AUDUSD has been unable to maintain a break through that level. It has been rejected every time.

If it was to continue to ease lower, you could reasonably expect the 0.7750 level to kick in and provide some measure of support, as this level has provided resistance several times over the last 12 months.

As I type this, it is currently trading around 0.7837.

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.