Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Technical Analyst, Saxo Bank
ASX 200 did close above resistance at around 7,370 only to be rejected at 7,400. Sellers seem to take control. A correction down to the 0.382 retracement and support around 7,200 could be seen.
However, the Index is above the cloud and RSI is showing positive sentiment without divergence indicating higher levels are likely.
If ASX 200 can close above 7,392 a move to February peak could be in the cards.
AUDUSD 0.68 seems too strong a resistance for AUDUSD to break. The pair is dropping and could test the strong support at around 0.6575.
A close below 0.6575 could fuel further sell off down around 0.64 support area.
For AUDUSD to establish an uptrend a close above 0.68 is needed. An uptrend that can, if that scenario plays out, take AUDUSD to 0.618 retracement at around 0.6930.
RSI is showing negative sentiment having failed to close above 60 which indicates 0.6575 support is likely to be tested.