- The Tuesday session has broken to the upside as the market had pierced the 8,300 Australian dollars level. In fact, at one point during the day, it looked like we were really going to take off, but there was a sudden turnaround.
- And now it looks like the market is a little bit sluggish at this point in time.
- As we continue to watch this market, it is worth noting that it will be influenced by other indices in places like New York.
Whether or not we can turn around and recapture the momentum remains to be seen, but I would say the odds are probably with that happening. The ASX 200 has a massive amount of support down at the $8,100 Australian dollars level, and of course we have seen several days in a row where it had been choppy, and we had wicks in both directions on the chart. So, I think you've got a scenario where traders will continue to look at this through the prism of trying to find value.
ASX 200 is a Smaller Index
Because of this, I do like the idea of buying dips, but I also recognize that the ASX 200 is a smaller index, because Australia, of course, is a smaller economy.
Furthermore, it is heavily laden with financials and commodities with more potential momentum being driven by commodities than anything else as BHP, Rio Tinto, Macquarie, and several other major companies are in the index.
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With this, you will have to see more risk on behavior for the ASX to rise and I do think it happens. I just think we've had a little bit of volatility and maybe just reached a little bit ahead of ourselves on Tuesday.
It is because of this that I will be looking to dip my toes in the market on short-term dips and take advantage of what has been a very strong uptrend. At this juncture, I just don't see any point in trying to get short of the ASX200.
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