Asia Pacific indices have gone into rally mode with indices in Japan, Australia, Hong Kong and India, all blasting through what had previously been resistance levels. AUD and NZD, meanwhile, have significant resistance tests underway that could end in breakouts or double tops with the potential for action around today’s NZ PMI and Australia employment reports. Confirming markets have gone back into risk-on mode, JPY and gold continue to retreat.
Asia Pacific Indices
Australia 200 continues to climb after breaking out of a downtrend establishing 5,000 as new support and advancing on 5,100 with next potential resistance near 5,185 a Fibonacci level. RSI climbing up off 50 confirms momentum turning increasingly upward.
Japan 225 is breaking out of a base today, spiking up off 16,055 a Fibonacci level into the 16,540 to16,660 zone with next potential resistance near 16,790 then 17,150. RSI regaining 50 confirms an upturn underway.
Hong Kong 50 is breaking out of a channel today clearing the 21,000 round number and soaring into the 21,290 to 21,390 area with next potential resistance near 21,420 then 21,640.
India 50 is breaking out today, clearing 7,750 to signal the start of a new upleg and then rallying up into the 7,830 to 7,870 area with next potential resistance near 7,940 then 8,000 and 8,080. RSI above 50 and rising confirms upward momentum increasing.
North American and European Indices
US 30 is breaking out of a consolidation range today, driving up off a higher low near 17,720 up through 17,870 and on toward 17,900 with next potential resistance looming near 18,000 the November high and a round number.
US NDAQ 100 is testing the top of its 4,450 to 4,550 trading channel holding above 4,500 a Fibonacci level and with support rising toward 4,530. Next measured resistance on a breakout near 4,650 with more support at the 200-day average near 4,415.
US SPX 500 is testing the top of its current trading range between 2,040 and 2,080 with next upside resistance possible near 2,100 then a measured 2,020. RSI bouncing off 50 suggests its primary uptrend may be resuming following a correction.
UK 100 is in rally mode today, confirming the breakout from a channel and over its 50-day average rallying up from near 6,250through 6,310 and on toward 6,370 with next potential resistance near 6,445 a prior high. RSI clearing 60 confirms upward momentum increasing.
Germany 30 is trading above the 10,000 round number once again after blasting up through 9,800. RSI back above 50 and rising confirms upward momentum increasing with next resistance near 10,150 where a breakout would complete a head and shoulders base.
Gold is turning sharply downward again falling from near $1,256 toward $1,240 with next support near $1,228 a Fibonacci level and the 50-day average. This big drop confirms that the recent failure at $1,260 appears to have formed the right shoulder of a head and shoulders top.
Crude Oil WTI has paused near $41.30 a Fibonacci level consolidating yesterday’s breakout over $40.00 after running into resistance near $42.00. An overbought RSI and negative divergence suggest upward momentum may be starting to fade.
US Dollar Index is turning back upward staging a bullish breakaway following a doji candle. This suggests dominance has shifted from bears to bulls for now as the index rallies up from 94.00 toward 94.80. It would need to retake 95.00 to suggest this is more than just a trading bounce.
EURUSD is rolling over in earnest, dropping from near $1.1400, taking out $1.1350 and diving back toward $1.1275 a Fibonacci level with next potential support near $1.1215 then the 50-day average near $1.1175. RSI diving toward 50 suggests a downshift in momentum underway.
NZDUSD has encountered some resistance near $0.6970 with more possible at the $0.7000 round number. It has paused in the $0.6900 to $0.6930 area with a higher low indicating its underlying uptrend remains intact as it digests recent advances.
AUDUSD peeked above the top of its $0.7500 to $0.7700 channel but failed to hold the gains and has slumped back into the $0.7630 to $0.7660 area. A higher low in the RSI suggests upward momentum weakening.
USDCNH is trading steady near 6.4830 just above 6.4795 a Fibonacci level within a 6.4570 to 6.5000 trading range. Higher lows in the RSI suggests momentum slowly turning upward.
USDSGD has bounced back up toward $1.3520 into the upper half of a $1.3400 to $1.3600 range where it has been consolidating. RSI creeping up toward 50 indicates downward momentum fading.
USDJPY continues tis rebound, breaking out over 109.00 and climbing toward 109.30 with next potential resistance near the 110.00 round number. RSI gaining on 50 indicates the current trading bounce continues as downward pressure fades.
EURJPY has paused between 122.50 where it appears to have completed a double bottom retesting its February low, and 124.25. RSI indicates downward pressure appears to be levelling off with the pair trading near 123.30.
CADJPY continues to climb, holding above 85.00 building on a recent breakout over 84.50, its 50-day average and 50 on the RSI. Next potential resistance near 86.20 then 87.50 its March high.