Action is starting to really pick up across a number of markets heading into a potentially big back half to the trading week. Crude oil turned sharply downward pulling on resource markets. CAD weakened while Australia 200 has completed a head and shoulders top. Sterling has attracted renewed interest heading into the UK election. AUD has broken out over $0.7500.
Asia Pacific Indices
Australia 200 is breaking down today, taking out 5,665 to complete a bearish head and shoulders top. Falling RSI confirms downward momentum increasing. Next potential support appears at the 200-day average and a Fibonacci test near 5,610 then 5,500.
Japan 225 has regained 20,000 for now but remains short of its recent high near 20,240. A negative RSI divergence indicates slowing upward momentum. Initial support has moved up toward 19,910.
Hong Kong 50 continues to trend upward, clearing 26,000 and testing 26,075. An overbought RSI, however, suggests that the rally may be getting overextended making a pause or correction possible. Next measured resistance possible near 26,310 with support moving up toward 25,820.
North American and European Indices
US 30 has stabilized between 21,140 and 21,180 for the moment but continues to fall away from 21,200 and 21,230 resistance. Next potential support appears near 21,100 then 21,060 a 23% Fibonacci retracement of the recent advance.
US SPX 500 has dropped back toward 2,430 from 2,438 in what looks like a normal trading correction so far. RSI indicates a pause underway within an ongoing uptrend. Initial support possible near 2,426 then 2,417, a 23% retracement level.
US NDAQ 100 has run into resistance near 5,890 and with RSI overbought, a pause or correction looks possible in the near term. Initial support possible in the 5,800 to 5,810 area, then 5,760 a 23% retracement of the recent upleg.
UK 100 has dropped back under 7,500 with next potential support near 7,450, a recent breakout point. A bounce earlier in the day failed to retake 7,550 confirming the completion of a bearish rising wedge. Additional resistance in place near 7,600. RSI under 70 and falling after a negative divergence indicates weakening upward momentum and a deepening correction.
Germany 30 has stabilized near 12,680 around the middle of a 12,475 to 12,900 sideways range, recently trading between 12,640 and 12,740. Lower highs following a double top and RSI below 50 indicate emerging distribution.
Gold is hanging around the $1,285 to $1,290 area, still struggling with resistance in the $1,295 to $1,300 zone but holding well above $1,280 its recent breakout point. The price appears to be pausing normally to work off a near overbought RSI.
WTI crude oil has been crushed again, with big plunges by the price and the RSI confirming a new downleg starting and downward pressure increasing. The price went off a cliff diving down from $48.00 toward $45.75 with next potential support near $45.00 then $43.45.
US Dollar Index found some support near 96.50 and has started to bounce back a bit. A growing positive RSI divergence indicates downward pressure easing and accumulation starting. The index needs to retake 97.00 to signal an upturn with next potential resistance near 97.65 if successful.
EURUSD failed to overcome $1.1290 resistance and has turned back downward, dropping toward $1.1255. Meanwhile, a head and shoulders top in the RSI suggests upward momentum has peaked and a downturn possible. Initial support possible near $1.1200 then $1.1170 and $1.1120.
GBPUSD remains under accumulation trading well above $1.2870 support and advancing on $1.2950. Next potential resistance appears in the $1.3000 to $1.3040 zone then $1.3155. RSI above 50 and rising indicates increasing upward momentum. On a pullback, additional support may appear near $1.2790 a Fibonacci level and the 50-day average.
NZDUSD is still trending upward with $0.7160 a recent breakout point becoming support, and the pair advancing on $0.7200. Rising RSI indicates upward momentum still increasing with next potential resistance near $0.7245 on trend.
AUDUSD is breaking out today, rallying up off $0.7480 support, decisively clearing $0 7500 plus $0.7540 on its way toward $0.7570. Rising RSI confirms increasing upward momentum. Next potential resistance appears near $0.7590 and $0.7625.
USDSGD is bouncing around between $1.3780 and $1.3830 trading near $1.3810 a Fibonacci level. It remains unclear if this is a base forming or a pause within an ongoing downtrend.
USDJPY has paused between 109.10 and 110.00 to consolidate the multiple breakdowns below 110.60 a Fibonacci level, its 200-day average. RSI under 50 and falling confirms increasing downward momentum. Next potential support near 108.10.
GBPJPY is on the rebound, bouncing up off of 140.80 through 141.85 a Fibonacci level and on toward 142.30 near the 50-day average. Next potential resistance appears near 143.30. RSI finding support near 40 suggests the underlying uptrend may be reasserting itself following a selloff.
EURJPY held 122.50 support and 50 on the RSI and has started to rebound suggesting a recent downdraft may be ending. The pair has bounced back up toward 123.60 with next potential resistance near 124.40.
USDCAD is turning back upward on a bounce up off of $1.3440 uptrend support. The pair has regained $1.3500 advancing on $1.3530 with next potential resistance near $1.3545 then $1.3635. RSI testing 50 which could end in a breakout and uptrend signal or confirmation of a downtrend.