Australia 200 (ASX 200) Benefits from Domestic Development

The ASX 200 has rebounded upward from a crucial technical landmark. This development appears to stem from increased industrial activity in Australia, occurring at a time when two economic giants—the US and China—are engaged in a tariff war.

Key Price Levels:

Resistance Levels: 8,500, 9,000, 9,500

Support Levels: 8,000, 7,500, 7,000

ASX 200 Recovers From a Sharp Downward Retracement

Price action in the ASX 200 daily market has rebounded off the converging 20- and 50-day Moving Average (MA) lines. Consequently, trading continues above all the MA lines, and the latest price candle remains green.

This indicates that the general uptrend is still intact, as price action has just rebounded from a higher baseline. Meanwhile, the Stochastic Relative Strength Index (RSI) lines have fallen sharply following the price dip that occurred in the previous session. This suggests that price action may climb higher, given that downward forces appear weak.

Australia 200 May Briefly Descend Towards the 8,000 Threshold

While the ongoing session on the daily chart remains bullish, the 4-hour chart presents a different picture. Here, price action is trading below the 20- and 50-day MA lines. In addition, these MA lines are converging for a potential crossover above recent price candles. The latest price candle on this chart is bearish, hinting at further declines.

Although the Stochastic RSI lines are still projected upward, the lead line shows only a slight deflection. Ultimately, the arrival of further economic developments will be vital in determining whether the market can rebound above the 8,500 mark.

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