Break or Fade? 8627 Is the BattlegroundAustralia 200 CFDFOREXCOM:AUS200FOREXcomOur Australia 200 contract is testing a key level on the charts, providing a decent area to build trade setups around. 8627 is the focal point, coinciding with the Valentine’s Day swing high from February this year. Since then, it has acted as resistance and support on multiple occasions, so it’s no surprise the price now finds itself interacting with the level. Right now, it’s sitting beneath 8627 after failing to sustain a probe above earlier today. That mirrors what we saw late last week, suggesting bears are selling into strength and have the ascendency. RSI (14) and MACD back this up, both sitting in bearish territory and favouring short setups over long. If the price remains capped beneath 8627, shorts could be set at or below the level with a tight stop above for protection, targeting either 8565, 8500, or the 200DMA depending on desired risk-reward. Alternatively, if we see a break and close above 8627, the setup could be flipped with longs placed above with a stop below, targeting 8726 initially given it previously acted as support. As mentioned above, given recent price and momentum signals, this setup goes against the prevailing grain, emphasising the need to see any bullish reversal stick before considering long trades. Good luck! DS