ASX 200 - Preparing for a Corrective Move

EagleFX Team EagleFX

The Australian stock index ASX 200, in its hourly chart, shows a corrective formation as a flag pattern, which makes us expect a new bearish movement.

According to the traditional technical analysis, the flag pattern is a chartist formation that calls for the continuation of the previous move. In work developed by Thomas Bulkowski, the author of "Encyclopedia of Chart Patterns," the author concludes that the flag pattern tends to have a failure rate of less than 5%.

The short-side positioning will active id the price breaks down and closes below 7,044.8 pts. In a conservative outlook, we foresee a potential first target at 7,008.7 pts.

If the price continues its drops, the Australian index could drop to 6,955.4 pts and extend until 6,881.5 pts.

The invalidation level of our bearish setup locates at 7,101.5 pts.

Trading Plan Summary

Entry Level: 7,044.8 pts.

Protective Stop: 7,101.5 pts.

1st Profit Target: 7,008.7 pts.

2nd Profit Target: 6,955.4 pts.

3rd Profit Target: 6,881.5 pts.

Try Secure Leveraged Trading with EagleFX!

Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.