Wednesday, 17 August 2011

Aussie dollar and ASX SPI 200 hit potential resistance

The daily charts for both the Aussie dollar and the ASX SPI 200 show that these markets have reached significant trend line resistance. Also both markets are trading at around their 18 day moving averages, an area that I often find useful to gauge whether an existing trend will continue or reverse.

Therefore it is time to be watchful for a turn down at lower degree of trend, ie. hourly chart. That is not to say that we will see such a turn lower, simply that both markets are in a zone where if such a turn happens, a trader's risk levels would be close by and very clearly defined by the trend lines on the daily chart.

Here are the daily charts for each market.

AUD/USD...


ASX SPI 200...


Aussie dollar and ASX SPI 200 daily charts

AUD/USD, resistance should be strong between 1.05 and 1.06 IF the trend is down...


ASX SPI 200 looks to have bounced lower from the trend line, though a move below yesterday's lows would add confidence to that view...




Japanese Nikkei is worth watching

Weekly chart, shows that a move lower from current levels will complete a Head and Shoulders top, and likely lead to a strong decline...


Hourly chart shows trend line support...


EUR/USD triangle continues


Gold onwards and upwards

The head and shoulders potential on the hourly chart has been eliminated, so onwards and upwards for Gold, as the daily chart shows...