The Trade: ASX 200 movements and their impact on forex trading
IG's Tony Sycamore explores the latest trends in the ASX 200 alongside movements in forex and cryptocurrency markets.
(AI video summary)
This video was created on 16 October for IG audiences by ausbiz.
IG's Tony Sycamore provides insight on how recent developments in the ASX 200, along with forex and cryptocurrency market trends, influence trading strategies through technical analysis and macroeconomic factors.
Technical analysis driving ASX 200 adjustments
The ASX 200 recently surged to a record high of 8331 after five weeks of gains on Wall Street, driven by optimism surrounding China's economic policy pivot.
Despite initially breaking above the trend channel resistance, the index retreated again following a pullback in US markets. For a sustained upward movement, market participants are watching for a consistent close above this level. Critical support lies between 8110 and 8100, providing essential insights for traders utilising technical analysis to forecast future market behaviour.
Forex market trends and the Aussie dollar
The foreign exchange market is closely monitoring events influencing both the Australian dollar and US dollar. The US dollar has gained strength, fuelled by robust economic indicators like non-farm payrolls and a firmer consumer price index (CPI). Conversely, the Australian dollar has softened, trading around $0.67, influenced by uncertainty over Chinese fiscal stimulus and domestic economic data.
Tomorrow’s jobs report could introduce volatility, with potential Reserve Bank of Australia (RBA) interest rate cuts if the data falls short of expectations.
Cryptocurrency resistance and oil market dynamics
Bitcoin exhibited volatility, testing resistance near $68,000.00 but facing repeated rejections. This trend indicates a need for caution among traders, who should await a clear breakthrough above resistance before considering long positions.
In the oil market, recent geopolitical relief saw prices tumble 4% overnight, with crude oil unable to maintain levels above key support between $72.50 and $71.50. Traders are advised to watch for further declines towards $65.27, marking previous lows as the market navigates ongoing momentum shifts.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
