Good morning Forex Kings,
This morning the Australian government has unveiled its plans for a $17.6 billion stimulus package to help prevent a recession, including cash payments to households with aid for the tourism industry.
This stimulus package could provide some support to the ASX.
Looking at the technical analysis, there is also an interesting opportunity.
ASX – Weekly Charts
Looking at the weekly perspective, there has been a major double bottom. The market momentarily dropped below the channel line, however is now trading back inside the channel. Double bottoms have created buying opportunities previously.
ASX – Daily Charts
Oversold on the RSI meaning we may see a retracement higher. Resistance levels can be found at 5980 and 6370.
Trade setup: BUY ASX (AUS200) Market Order – Stop loss 5350 and take profit 5980-6370
Stop loss: 210 PIPS
Take Profit: 420 PIPS