The ASX200 index continues to disappoint. It continues to trade in a tight range – this week between 5700 and the key level of 5800.
I say disappoint because many ‘buy and hold’ people are disappointed the index hasn’t gained this year – it opened the year at 5667 – but also to index traders, many who need some movement beyond the 100 points range it is currently experiencing.
I am not sure there is much more I can about the ASX200 Index, as it continues to do little. As you can see on the chart below, the selling pressure / resistance continues at 5800.
The all time highs / lows reading this week is 9 / 2. Some of the all time highs include Kogan.com, REA Group and the A2 Milk Company. The lows are Freelancer and Ding Sheng.
Daily chart of S&P/ASX200 Index | Image from MetaStock
In the last week the Australian dollar has been sold off at any level above the current 0.80. Earlier this week it made another run above this level before being sold off and just easing lower in the last few days. The price action over the last week or so indicates how significant the 0.80 level now is.
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.
Interestingly, the 0.80 level doesn’t have too much history of being a key level. If you scroll back through a chart of the AUDUSD, you have to go back to around mid 2010 to see the 0.80 level having a significant impact on price.
As I type this, it is currently trading around 0.7970 – exactly the same price as this time last week.
Daily chart of AUDUSD | Image from MetaStock
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