Australia 200 (ASX 200) Sees a Sharp Bearish Correction

The ongoing U.S. trade tariff drama continues to reshape the financial landscape. The Australia 200 (ASX 200) index recently experienced a sharp bearish correction. This was triggered by a surprise move from the U.S. President, who imposed a tighter-than-expected 50% tariff on all copper pipes and wiring. Let’s take a closer look at the market below.

Key Price Levels

Resistance Levels: 8,700, 9,000, 9,500

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

Australia 200 Eyes More Losses

Analyzing the ASX 200 on the daily chart, it is evident that price action has fallen through a short-term bearish test. Overall, the downward retracement has been quite sharp, with the ongoing session trading below the middle band of the Bollinger Bands (BB) indicator. The current candle appears compressed and positioned beneath the BB’s midline.

The Stochastic Relative Strength Index (SRSI) has delivered a bearish crossover, and the resulting indicator line continues its descent. Technically, this indicates that bearish sentiment still dominates the market.

ASX 200 Faces Rejection at 8,600

On the 4-hour chart of the Australia 200, price action initially showed signs of recovery from a lower base. However, this was quickly revealed to be a failed rebound, as price was rejected at the 8,600 resistance level. This resistance has now become more evident.

The Bollinger Bands remain widely divergent, suggesting high volatility. Meanwhile, the SRSI indicator line is still trending upward despite the rejection at the 8,600 level. Even so, price remains below the middle band of the BB indicator, which keeps the market technically vulnerable.

Considering the broader fundamental outlook, it appears likely that price action may continue falling toward the 8,500 support level.

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