The ASX 200 broke resistance at 5590/5600 and is set for a further advance. Recovery of 13-week Twiggs Money Flow above the descending trendline would confirm long-term buying pressure. Convergence of targets, calculated for different time frames, at 5750/5850 also strengthens the signal:
- 5250 + (5250 – 4650) = 5850
- 5450 + (5450 – 5050) = 5850
- 5550 + (5550 – 5350) = 5750
Reversal below 5540 is most unlikely, but would warn of a correction.
ASX 200 VIX near 10 continues to indicate a bull market.
The Australian Dollar is consolidating in a narrow range below resistance at $0.94, suggesting an upward breakout. Only concerted action by the RBA would be likely to counter this. Follow-through above $0.945 would confirm a rally to $0.97. Reversal below $0.92 is most unlikely, but would warn of a test of primary support at $0.8650/$0.87.
