Australia 200 is breaking out of a channel today, confirming the recent completion of an ascending triangle and bringing the 6,000 round number into view. There has been renewed interest in resource markets with Crude oil and CAD also climbing. In addition, GBP has regained $1.2400 and AUD has regained $0.7500 against the greenback but NZD is still struggling with $0.7000.
Asia Pacific Indices
Australia 200 is breaking out today, clearing 5,910 to clear the top of a sideways channel and confirm a recent ascending triangle breakout. Support moves up toward 5,880 from 5,835 with next potential upside resistance in the 5,990 to 6,000 area between a measured move and a round number.
Japan 225 is still struggling with resistance at 18,840 a former channel bottom, confirming its recent breakdown. The index has resumed its downtrend with next potential support near 18,700 then 18,000. Falling RSI confirms continuing distribution.
Hong Kong 50 continues to roll over, trading near 24,225 having dropped back from a lower high near 24,345. Next potential support near 24,130 then 24,000 and the 50-day average near 23,900. RSI falling toward 50 where a breakdown would confirm a downturn in momentum.
North American and European Indices
US 30 continues to consolidate between 20,620 and 20,750 recently trading near 20,690 above its 200-day average. RSI remains stuck below 50 indicating flat to slightly downward momentum. Next potential downside support near 20,500.
US SPX 500 remains stuck in a sideways trend between 2,315 and 2,400. RSI sitting on 50 and a symmetrical triangle forming between 2,340 and 2,365 confirm sideways momentum.
US NDAQ 100 is still stuck below 4,540 following a failed breakout attempt last week but with the RSI holding 50 and the index holding above support in the 5,380 to 5,400 area trading near 4.325, this appears to be a rest stop within an ongoing uptrend.
UK 100 continues to form a head and shoulders top trading below 7,400 and failing to retake the extension of a broken uptrend line near 7,360. Initial support in place near 7,300 followed by the pattern’s neckline near 7,260.
Germany 30 keeps drifting downward within a 12,100 to 12,325 trading range, but remains in a long-term uptrend above 12,000 round number support and its 50-day average near 11,925. RSI suggests a pause underway within an ongoing uptrend.
Commodities
Gold is back sitting between $1,250 and $1,255 after an attempt to break out over its 200-day average near $1.260 failed. RSI is rolling over indicating upward momentum fading but channel support remains in place near $1,240 with more possible at the 50-day average near $1,235.
Crude Oil WTI continues to climb upward with support rising toward $52.00 from $51.00 and the price advancing on $52.70 with next potential resistance near $53.55 then $54.45. Rising RSI indicates upward momentum still accelerating.
FX
US Dollar Index tried to build on Friday’s big rally by clearing the 101.00 hurdle but failed and slumped back toward 100.90 in what looks like a normal trading correction after 8 gains in the last 9 days for the greenback. Rising RSI indicates increasing upward momentum. Next potential resistance near 101.55 then 102.00 with next support near 100.60.
EURUSD is testing $1.0600 digesting Friday’s big selloff. RSI under 50 and falling indicates increasing downward pressure. Next potential support near $1.0585 a Fibonacci level then $1.0540 and $1.0500 a round number.
GBPUSD successfully retested $1.2355 support and has bounced back up through $1.2400 on toward $1.2420 and its 50-day average. RSI levelling off near 50 indicates sideways momentum. Next upside tests possible near $1.2465 then $1.2500.
NZDUSD has bounced up from $0.6920 toward $0.6965. Support appears to be coming in at a higher level, an encouraging sign, but the pair really needs to retake $0.7000 and 50 on the RSI to suggest this is any more than another upward correction within an ongoing downtrend. Next potential support near $0.6900 and $0.6860 should it fail.
AUDUSD is back up at $0.7500 having bounced up off support near $0.7475 in what could be a bear trap washout. RSI suggests downward pressure levelling off but it too early to call a turn. Initial rebound resistance near $0.7530 then $0.7550 with next support possible near $0.7435.
USDSGD has encountered resistance near $1.4085 and its 50-day average, sliding back toward $1.4050 in what looks like a normal trading correction. It remains in an uptrend with the pair holding $1.4000 and RSI retaking 50. Next potential resistance on a breakout near $1.4155.
USDJPY started to turn downward again. The pair cleared 111.25 a Fibonacci level but ran into resistance near 111.60 and has dropped back toward 110.90 with next support near the 110.00 round number. RSI indicates downward pressure stabilizing.
GBPJPY holding above support near 136.70 and its 200-day average trading near 137.75 but it remains in a downtrend with a descending triangle forming below 138.75. RSI under 50 indicates continuing distribution.
EURJPY is still trading near its 200-day average near 117.75 sending mixed signals. It remains in a downtrend dropping form 117.90 toward 117.50 with next potential support near 116.70 then 116.00 but an oversold RSI suggests potential for a bounce with initial resistance possible near 118.40 then 118.80.
USDCAD continues to roll over with resistance falling toward $1.3425 and the pair dropping down toward $1.3330. RSI back under 50 signals momentum turning downward Next downside tests near $1.3300 then $1.3270 near a previous low and the 50-day average.
