The Australian dollar seems to have settled in the last month or so trading around the key 0.75 level. The AUD/USD is currently trading right around 0.7520 (as I write this).
The ASX200 continues to steadily climb higher and has enjoyed a strong July.
AUD/USD
The Australian dollar has moved to just near 0.7650 twice in the last six weeks only to be met with reasonable selling and therefore creating an obvious level of resistance. It has spent the most part of the last two months trading in a reasonably narrow range between 0.7350 and the resistance at 0.7650.
If it can return back to the resistance at 0.7650 and maintain a break, the next obvious level is up above 0.78.
ASX200
The ASX200 has enjoyed a steady July as it continues to steadily move higher moving through to near 12 month highs at 5570 today before easing a little. The sentiment indicator shown below is reading quite high (its highest in 15 months) and obviously bullish. It is reasonable to expect a slight easing in the index in the short term with a possible testing of the previous resistance level at 5400.
Image from MetaStock
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