Reluctance to Move Higher – Market Update


The ASX200 index seems a little confused, as it moves back and forth between 5650 and 5800. The selling pressure / resistance continues at 5800 as the index repeatedly gets pushed back from around this level. Again, with the resistance in place and playing a significant role, the key level of 6000 seems so much further away. Interestingly the recent troughs have all been a little higher than the previous forming a symmetrical triangle since the beginning of June.

The all time highs / lows reading this week is 4 / 3. Some of the all time highs include Iress, BWX and Costa. 2 of the 3 stocks that fell to all time lows this week are Kina Securities and Oneall.

Daily chart of S&P/ASX200 Index | Image from MetaStock


The Australian dollar has spent its week declining from the ever present key 0.77 level. This is following a strong week last week which saw rally strongly off support around 0.7550 and move to its highest level since mid-March.

As I mentioned last week, the AUDUSD has run into an old nemesis in the key level of 0.77 which has been sitting back waiting for another visit from the Australian dollar. The pin bar to finish last week did a great job of illustrating how much selling pressure / resistance there is at this level.

As I type this, it is currently trading around 0.7585.

Daily chart of AUDUSD | Image from MetaStock

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