AUDUSD to Eight Month High – Market Update

Finally something has moved with the Australian dollar moving up through the key 0.77 level to an eight month high above 0.7750 and only pips away from its highest level since November 2016.

ASX200

To the more boring thing first. The ASX200 index continues to move between 5650 and 5800. The selling pressure / resistance continues at 5800 even including today as it moves to its highest point in over a week however it yet again is repelled from this level. Again, with the resistance in place and playing a significant role, the key level of 6000 seems so much further away.

The all time highs / lows reading this week is 6 / 4. Some of the all time highs include Iress, Kogan.com, and Phileo Australia. The lows included Surfstitch and Pacsmiles.

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

AUD/USD

As I opened with, the Australian dollar has enjoyed a sensational week moving strongly higher more than 150 pips from the recent trough below 0.76 up through the most significant level of 0.77 to an eight month higher. The significance of the 0.77 level cannot be overstated (although I try sometimes), as it has repelled the Australian dollar on numerous occasions over the last 18 months.

With support and resistance levels, the more they are tested and stand up over an extended period of time, they grow in significance … albeit a little self-fulfilling.

As I type this, it is currently trading around 0.7756.

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.