Iron ore likely to drag down gains in ASX200; Downside momentum for the AUDUSD: Saxo Capital Markets - Two trading ideas from Saxo Capital Markets...

Iron ore likely to drag down gains in ASX200; Downside momentum for the AUDUSD: Saxo Capital Markets - Two trading ideas from Saxo Capital Markets Australia: Copper rallied almost 2% overnight and the ASX200 rebounded as the start of the ECB's sovereign bond QE boosted sentiment globally. However, iron ore was down more than 1.5% to a new fresh low, with large miners likely to drag down any upside for the index. Iron ore continues to show further weakness as China vows to cut overcapacity in the steel industry as it lowers GDP growth to 7%, and environmental concerns over pollution imposes challenging limitations for business to meet guidelines. AUDUSD had a relatively quiet and choppy overnight session. The interim resistance level of 0.7727 was broken a number of times, but AUDUSD still could not test the next resistance level 0.7750 and came back down to 0.7700. This price action signals that the downside momentum still remains and we expect AUDUSD to continue to weaken towards the next support level 0.7643, the previous swing low on February 12. (VIEW LINK)