Australian S&P/ASX 200 Index Hits All-Time High
As seen on the S&P/ASX 200 chart (Australia 200 on FXOpen), today's candle surpassed the 8200 level, marking a new all-time high.
Positive sentiment was driven by:
The Federal Reserves decision to cut interest rates, which led to a surge in volatility and set historical records for gold prices (XAU/USD), the S&P 500 index (US SPX 500 mini on FXOpen), and others.
Today's positive news from the Australian labour market, showing that unemployment has not increased, and the number of new jobs created in the month exceeded expectations (actual = 47.5 thousand, forecast = 26.4 thousand).
Technical Analysis
The S&P/ASX 200 chart (Australia 200 on FXOpen) indicates price movement within converging trend lines:
The lower line was breached in early August amid widespread panic across financial markets. However, it later resumed its role as support, as indicated by the arrow.
The upper line acts as resistance, which today is reinforced by the psychological level of 8200. Despite this, the price's position near the candle's high suggests that bulls are showing persistence, at least for now.
Given that the RSI indicator is at its highest level since early August, it is reasonable to anticipate that current bullish sentiment might face increased selling pressure in the short term. If the S&P/ASX 200 (Australia 200 on FXOpen) follows a correction scenario, support could come from the previously mentioned level of 8200, as well as the 8110 level, which has shifted from resistance to support.
Read more: https://fxopen.com/blog/en/oa-australian-s-p-asx-200-index-hits-all-time-high/
Text source: Forex Trading Blog
