The recent support at 5600 has paid off as the index has been able to rally back again towards the key 5800 level before running into further selling pressure / resistance at this level. It was able to rally above the previous trough (low) a few weeks ago around 5650, however yet again the 5800 remains a thorn in its side.
I did mention last week about this week being the last of the financial year, and whether there would be any extra volatility due to ‘window dressing’ that occurs before statements are closed. Finally to summarise, the index really hasn’t moved anywhere in the last 6 months – opening the year at 5667 and finishing the week (and FY) at 5721.
The all time highs / lows reading this week is another impressive 15 / 5. Some of the all time highs include household names again like CSL, REA Group and Sonic Health. Some of the 5 stocks that fell to all time lows this week include Surfstitch, Acrux, and Devine.
Daily chart of S&P/ASX200 Index | Image from MetaStock
The Australian dollar has enjoyed its week moving strongly higher and move the most it has done in months. It rallied off support around 0.7550 and despite several days in a row of impressive upper tails / wicks on the candlesticks a couple of weeks ago around 0.7630, it has been able to push through and move to its highest level since mid-March.
It has however run into an old nemesis in the key level of 0.77 which has been waiting for sometime to be revisited by the Australian dollar. Well, the 0.77 level has awoken from its 3 month slumber and is now back in action providing selling pressure.
As I type this, it is currently trading around 0.7690.
Daily chart of AUDUSD | Image from MetaStock
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