There really is nothing to see here …. both the AUDUSD and ASX200 index have gone up a few days this week and down a couple to end the week almost where they started.
The ASX 200 rallied a little to get close to 5500 however finished the week lower as it rests on the support level at 5400.
This week the highs / lows reading is 12 / 6. There were 12 stocks in the top 500 that achieved new all time highs this week with the cheapest of these being Skydive the Beach (ASX Code: SKB) – please be wary of the lack of volume in this one.
There were with 6 at new all time lows this week with the highest price stock in that group being OFX Group (ASX Code: OFX).
Image from MetaStock
Just as I wrote last week (and the week before and the week before that), the 0.7650 level remains key for the Australian dollar and sure enough it has rallied well this week only to run into stiff resistance just above 0.7650. The more this level offers an obstacle to higher prices. the more it is likely to continue to discourage Australian dollar bulls.
Over the last few months the AUD/USD has traded mainly between 0.7500 and 0.7750 and therefore established a trading range which will have observers watching for which side breaks and where the next big move will be.
I stand by my previous comments that I see limited upside as the resistance around 0.7750 seems clear and earlier last week the AUD/USD rallied strongly but was sold off just as strongly from above 0.77.
As I type this it is trading just under the key level of 0.7650 around 0.7630.