There have been a number of trading reversals today as markets which initially followed through on yesterday’s bearishness reversed course in normal trading corrections. Most notably, Cable failed to hold $1.3000, gold dropped back under $1,250 and Yen pairs bounced back. Still, a number of markets stabilized near key support/resistance levels and did not give back all of their previous moves. Golden crosses in Cable and gold indicate that today’s trading may be more of a setback than a trend change.
Asia Pacific Indices
Australia 200 held 5,675 support and has started to stage a trading bounce, climbing back up toward 5,725. RSI under 50 indicates its broader downtrend remains intact. Next resistance at the 50-day average near 5,800 with next support possible near 5,600 and the 200-day average.
Japan 225 is mixed with a trading bounce underway up from 19,270 just above its 50-day average, back up toward 19,565. It remains below 19,695, however, which has been acting as channel resistance and support lately. RSI holding 50 indicates underlying accumulation continues for now.
Hong Kong 50 held 25,000 round number support and has bounced back up toward 25,255 where it may be carving out the right shoulder of a head and shoulders top. RSI still falling away from 70 indicates a correction underway.
North American and European Indices
US 30 has bounced back up toward 20,660 having found some support near 20,500. Initial rebound resistance appears near 20,700 then the 50-day average near 20,780. RSI stabilizing near 40 suggests a normal pause following a big drop.
US SPX 500 confirmed Wednesday’s plunge from 2,400 by retesting its broken 50-day average near 2,368 as lower resistance and falling toward the 2,346 to 2,366 area. RSI under 50 and falling confirms increasing downward pressure with next support possible near 2,325 the April low.
US NDAQ 100 has bounced up off of 5,540 index support and 50 on the RSI clawing back some of its recent losses. The index has bounced toward 5,625 but remains way short of the 5,725 range where its recent plunge started.
UK 100 found higher support near 7,390 and has bounced back up toward 7,465, regaining 7,450 which has been acting as both support and resistance lately. RSI still falling away from 70 indicates upward momentum still slowing and a sideways trend emerging below 7,525.
Germany 30 found some support near 12,480 and has bounced back up toward 12,610. RSI held 50 for now to keep its underlying uptrend intact but resistance has dropped toward 12,640 from 12,770. Next support in place near 12,270 the 50-day average.
Gold peeked above $1,260 briefly up toward $1,264 but has been knocked back down under $1,250 in a normal trading correction. Through this pullback, gold has held above its 50 and 200-day averages which have completed a bullish Golden Cross, and 50 on the RSI indicating its underlying uptrend remains intact.
WTI’s rebound continues to be contained by its 50 and 200-day averages near $49.10 with more resistance possible near $49.60 and $50.00. RSI clearing 50 is a bullish sign indicating momentum turning back upward. Support moves up toward $48.00 from $47.70.
US Dollar Index has paused between 97.40 and 97.80 to consolidate recent losses and its breakdown under 98.00. RSI under 50 confirms primary downtrend still intact with next support possible near 96.90.
EURUSD has levelled off between $1.1090 and $1.1160 to consolidate its recent breakout rally and work off a slightly overbought RSI. Meanwhile, the 50 day average approaching a Golden Cross of the 200-day confirms the underlying uptrend.
GBPUSD has staged a bearish reversal. The pair cleared the $1.3000 round number early on and advanced on $1.3040, then dove back down toward $1.2890 before rebounding toward $1.2930. Still the pair remains in an uptrend of higher lows supported by a Golden Cross.
NZDUSD remains in a downtrend, turning back downward after failing to retake $0.6960 on the pair and 50 on the RSI, confirming distribution. The pair has dropped back toward $0.6890 with next potential support in the $0.6810 to $0.6840 area.
AUDUSD ran into resistance near $0.7460 and has started to drop back, falling toward $0.7415 with next potential support near $0.7390 and then $0.7330. RSI under 50 and peaking at a lower high confirms downtrend.
USDSGD held $1.3875 and 40 on the RSI and has bounced back up toward $1.3940 facing Fibonacci resistance near $1.3950 then the $1.4000 round number.
USDJPY has bounced back up toward 111.55 the 50-day average in what looks like a normal upward correction after a big plunge down from 113.35 to 110.25 over the last day or so. RSI under 50 confirms momentum has turned downward. Initial resistance near 112.15.
GBPJPY has stabilized near 144.00 having held 143.30 Fibonacci support, a 38% retracement level. A sideways channel may emerge between there and 145.00. RSI holding 50 indicates underlying uptrend remains intact.
EURJPY is forming a hammer candle today after a drive down toward 122.65 from 124.05 was pretty much completely unwound. RSI remains below 70 after an extremely overbought phase so it remains vulnerable to a correction or could consolidate in the near term.
USDCAD appears to be turning back upward following a successful test of $1.3570 Fibonacci support and of 50 on the RSI. The pair has regained $1.3600 advancing on $1.3660 before stabilizing near $1.3620. Next resistance possible near $1.3770