ASX200
This is bordering on farcical now … the ASX200 index continues to do very little as it moves up to the key 5800 level only to be sold off again. What I find fascinating is that the US’ S&P500 index has not only recovered from the GFC 2008 losses, it has moved another 50% higher than the 2007 highs.
Incredible.
What has the S&P/ASX200 done since 2007? It remains around 1000 points lower than the 2007 highs, or roughly a little under 20% below.
Even this year the US markets have soared higher whilst the ASX200 is right around where it started on 3rd January.
I am not sure there is much more I can say about the ASX200 Index, as it continues to do little. It needs some sort of spark, doesn’t it? As you can see on the chart below, the selling pressure / resistance continues at 5800.
The all time highs / lows reading this week is 6 / 1. Some of the all time highs include the A2 Milk Company, South32, and Phileo. The low is Ding Sheng.
Daily chart of S&P/ASX200 Index | Image from MetaStock
AUD/USD
In the last week the Australian dollar has continued to decline from the current key level of 0.80. A few weeks ago it made repeated attempts to move through this level however it was rejected every time. The price action over the last few weeks 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 0.7860.
Daily chart of AUDUSD | Image from MetaStock
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