ASX 200 index: Bulls taking on the 10 and 20 EMAs at confluence of prior resistance

• ASX 200 Index higher by 0.68% on the back of a positive close on Wall Street. 
• Markets brush the pandemic blues aside, focused on economic recoveries. 

The ASX 200 rose by as much as 1% at the open, recouping some of Wednesday's losses but the rally has stalled.

The moves follow Wall Streets surge late in the session despite the upticks in COVID-19 cases. Tech shares were leading the way, taking the NASDAQ to a fresh record. 

More on this here: Wall Street Close: Bulls take back the baton, shrug-off 3 million US COVID-19 cases

Meanwhile, Melbourne is now in stage 3 lockdown for six weeks and NSW has flagged new restrictions of its own and the Tasmania state of emergency was extended.

In commodities, Iron ore hit a 2020 high of $US106.50 a tonne, while gold pushed to new 9-year highs above $US1800

"The surge in COVID-19 infections is gradually gripping the commodity market" analysts at ANZ bank explained. 

Energy traded in a tight range as the pandemic’s long shadow cooled demand prospects. Metals prices recouped their early session losses, as supply disruption outweighed the demand damage. Bulks are enjoying the broad based rally in the Chinese financial market. Bullion benefitted from safe-haven demand and a weaker US dollar, with the gold price breaking USD1,800/oz.

The ANZ China Commodity Index rose by about 1% on Wednesday.

ASX 200 Index levels

The index is battling on to hold in above a 61.8% Fibonacci retracement of the late June rally ahead of a test of the prior resistance structure of June 15-24th at a 20 hour EMA of 5987.

*Reprinted from FX Street. The Copyright all reserved by the original author.

https://www.fxstreet.com/news/...