The Trade: tracking Nasdaq and ASX 200 amidst rising geopolitical tensions
IG's Tony Sycamore analyses how geopolitical tensions impact the Nasdaq and ASX 200, and recent movements in oil, gold, and the Australian dollar.
(AI video summary)
This video was created on 2 October for IG audiences by ausbiz.
Nasdaq's recent volatility and support levels
IG's Tony Sycamore explores the recent volatility in the Nasdaq and ASX 200 as geopolitical tensions rise. The Nasdaq has been quite volatile lately, affected by geopolitical tensions in the Middle East. Despite climbing above 20,000, it fell back below this mark, indicating market uncertainty.
If the Nasdaq fails to hold support levels between 19,600 and 19,500, it could drop further towards 18,400, which aligns with the September low. Additionally, there's significant support at the 200-day moving average of 18,400 and an uptrend support near 18,000. Traders should keep an eye on these levels to anticipate potential movements.
ASX 200 trading insights and key levels
The ASX 200 recently hit a record high but then dropped back into its trend channel. Uncertainty due to China’s stimulus measures and the Golden Week holiday has led to some profit-taking. Key support levels to monitor include the 8111 low from last week. If the index drops below this level, it may continue downwards towards the middle or lower bounds of the trend channel. This cautious outlook suggests that traders should be prepared for further fluctuations and potential medium-term highs.
Commodity and currency market movements
The Australian dollar (AUD) has been fluctuating, acting as a proxy for Chinese economic conditions and US interest rate policies. Recently, the AUD tried to break a significant multi-year trend line at $0.69 but faced resistance, pulling back towards support around $0.6800 to $0.6825.
In commodities, crude oil and gold have seen notable movements. Oil prices dipped below the crucial $72.50 level but could try to reclaim it amid geopolitical tensions. Gold remains supported due to risk aversion and central bank easing policies, likely aiming again for the $2700.00 mark.
Traders should monitor these key levels and market conditions to make informed decisions in this volatile environment.
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