Last week I said there were signs of life and this week the optimism has continued.
The Australian dollar continues to defy the odds and is no doubt starting to concern the RBA again. I wouldn’t have believed you a month ago had you suggested the AUD/USD could move to above 0.75 and its highest level since July 2015, however here we are. As I type this on Friday afternoon, it is sitting right above 0.7480.
The ASX200 has edged a little higher and remains right at resistance around 5180.
For most of this year the Australian dollar has moved steadily higher and has recently moved through 0.75 to a new eight month high. It struggled at the resistance at 0.72 for a little while but has since surged through and run into recent resistance right at the key 0.75 level. It will be interesting to see what transpires over the next week as it trades around this nice round number, and after having just moved so strongly in the last two weeks.
If could quite easily fail at the current resistance level and if it does, look for the sellers to jump in and potentially move it back to the key 0.72 level again quite quickly.
There isn’t a lot to report about the ASX200 – it has moved up only 70 pts from last week’s close and has recently run into resistance around 5180, which is shown by the shorter line in the chart below.
Image from MetaStock
The current medium term trend is obvious after reversing in the last month.
I have been writing about the volatility of the index over the last month or so, however it has finally eased to back below 1.5%, for the first time since 8 January.
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