USD tumbled on Friday following the nonfarm payrolls report, enabling GBP and CAD to rebound while igniting rallies and breakouts for gold, NZD, JPY and EUR. Meanwhile, US indices continued to break out to new all-time highs shrugging off the job report with Japan 225 also putting on its rally cap.
Asia Pacific indices
Australia 200 continues to rally up out of a double bottom near 5,670, punching up against 5,800 with next potential resistance on a breakout near 5,835 the 50-day average then 5,900 and 5,955. RSI testing 50 where a breakout would confirm an upturn in momentum.
Hong Kong 50 continues to climb, breaking out over 25,800 and advancing on resistance in the 25,975 to 26,000 area. RSI getting overbought so a correction possible but so far, upward momentum remains intact.
Japan 225 broke out over 20,000 Friday to signal the start of a new upleg. Next measured resistance possible near 20,500 then 20,700. RSI mixed with a breakout from a downtrend offset by a negative divergence but upward momentum remains intact for now.
North American and European Indices
US 30 broke out to a new all-time high Friday, clearing 21,130 to complete an ascending triangle and signal the start of a new upleg then advancing on 21,215 . RSI breaking out of a downtrend confirms upward momentum accelerating. Next resistance possible near 21,230 then a measured 21 330.
US SPX 500 continues to climb to new highs, building on Thursday’s big breakout over 2,420. Rising RSI confirms increasing upward momentum. Recent trading near 2,440 with next potential resistance near a measured 2,465. Support rises toward 2,430.
US NDAQ 100 is hitting new highs again, building on its recent breakout over 5,800 trading up toward 5,870 with next resistance possible near a measured 5,875 then the 6,000 round number. RSI overbought but confirming increasing upward momentum for now.
UK 100 reached a new high near 7,600 but dropped back toward 7,540 in what could potentially become a bearish key reversal day. A negative RSI divergence suggests upward momentum may have peaked already.
Germany 30 broke out of a downtrend, blasting through 12,700. The index rallied to test the top of a 12,475 to 12,900 trading range but was unable to break out, slipping back toward 12,840. RSI confirms the upswing in momentum. The test of 12,900 could end in a breakout with next resistance near 13,000 then a measured 13,325, or a double top.
Commodities
Gold broke out over $1,270 Friday to signal the start of a new upleg with rising RSI confirming increasing upward momentum. Next potential resistance near $1,290 where a measured move and the April highs converge.
WTI continues to trend downward. Resistance drops from $49.00 toward $47.90 and the price has nosedived down toward $47.40 with next potential support near $46.60. RSI under 50 and falling confirms increasing downward momentum.
FX
US Dollar Index is testing the bottom of a 96.70 to 97.65 range where a breakdown would signal the start of a new downleg with next potential support near a measured 95.75. RSI suggests downward momentum levelling off for now.
EURUSD rallied up off of $1.1200 and broke out over $1.1260 Friday to signal the start of a new upleg. Next resistance appears at the November high near $1.1300 followed by a measured $1.1420 on trend. A negative RSI divergence suggests upward momentum could be slowing.
GBPUSD is struggling with resistance at a lower high near $1.2910 but at the same time remains under accumulation, having found support at a higher low near $1.2850. Next resistance near $1.2950 RSI bouncing around 50 indicates sideways momentum emerging.
NZDUSD staged a big rally and major breakout Friday, driving up off of $0.7060 through its 200-day average near $0.7100 and carrying on toward $0.7145 with next potential resistance near $0.7200. Rising RSI confirms increasing upward momentum.
AUDUSD bounced back up from $0.7365 support toward $0.7440 but it still needs to decisively retake $0.7500 and 50 on the RSI to call off its broader downtrend and signal an upturn.
USDSGD continues to bounce around between $1.3810 Fibonacci support and $1.3880 resistance. It remains unclear if this is a base forming or a rest stop within a bigger downtrend.
USDJPY is starting to turn back downward again following a head fake that saw it peek briefly above its 50-day average near 111.20 then break down through 110.60 a Fibonacci level and test its 200-day average near 110.40 with next potential support at the 110.00 round number. RSI remains below 50 indicating an ongoing downtrend.
GBPJPY remains under pressure with the pair failing to hold above 143,.30 a Fibonacci level then falling back to retest 141.85 the 50-day average. Next potential support in the 140.00 to 140.40 area. RSI failing to retake 50 and then falling confirms distribution.
EURJPY failed to hold above 125.00, dropping back from 125.30 toward 124.50 with next potential support near 123.05 a previous low. RSI trending down toward 50 indicates a deepening correction as upward momentum fades.
USDCAD tried to break out over the $1.3500 round number and its 50-day average, but ran into resistance near $1.3545 and gave back all its early gains in a bearish reversal. RSI failed to retake 50 indicating its broader uptrend remains intact. Next potential resistance near $1.3570 a Fibonacci level with next potential support near $1.3435.
