Chart Signals: Big trading reversals for CAD and SGD, EUR breaks out
It appears that the other dollars which had really taken advantage of USD weakness may be nearing their limits for now. Both CAD and SGD reversed course causing breakout attempts to fail, a sign of exhaustion while AUD and NZD also appear to be retrenching a bit. EUR, on the other hand, is breaking out against both USD and JPY
Asia Pacific Indices
Australia 200 has stabilized in the 5,060 to 5,080 area after successfully retesting 5,000 round number and Fibonacci support but encountering resistance near 5,100 with more possible near 5,145. Higher lows in the RSI indicate momentum still turning upward.
Japan 225 has taken a tumble faltering short of 17,000 and dropping back down through 16,815 a Fibonacci level and then on toward 16,750 with next potential support at the 50-day average near 16,625. RSI rolling under 50 signals momentum turning downward.
Hong Kong 50 has paused above 20,710 a Fibonacci level and recent breakout point but below 21,000 with initial resistance emerging near 28,870. A lower high in the RSI signals momentum may be shifting from upward to neutral.
India 50 has run into resistance near 7,750 once again where it has paused for now. Next potential congestion in the 7,800 to 7,825 area with support rising toward 7,710 from 7,645
North American and European Indices
US 30 has successfully retested its 17,665 breakout point as new support keeping its uptrend going and has bounced back toward 17,750 with next resistance possible near 17,800 then 17,900. An overbought RSI and a small negative divergence suggest potential for a pause in the short term.
US NDAQ 100 peeked briefly above 4,500 Fibonacci and round number resistance and then slipped back but support continues to rise toward 4,470 keeping its uptrend intact. Next upside tests possible near 4,525 then 4,575 on trend. Rising RSI indicates upward momentum increasing.
US SPX 500 is retesting its 2,060 breakout point as higher support bouncing around between 2,056 and 2,068 with next upside resistance tests near 2,074 then 2,085. RSI overbought with a negative divergence suggests rally may need to take a rest sometime soon.
UK 100 is holding steady in the 6,150 to 6,220 range with RSI confirming sideways momentum. A trend of higher lows below 6,250 and its 50-dya average indicates continued underlying accumulation and a bullish ascending triangle forming.
Germany 30 continues to bounce around the 10,000 level trading between 9,940 and 10,070 within a wider 9,780 to 10,135 channel. RSI steady near 60 indicates a consolidation phase underway within an ongoing uptrend.
Gold appears to be regaining its footing following a correction with RSI holding near 50 and the price bouncing up from a higher low near $1,224 back up through $1,228 a Fibonacci levelbut it needs to clear $1,245 to break a trend of lower highs and confirm an upturn.
Crude Oil WTI is on the rebound, establishing support near $36.60 and then rallying back up into the $37.20 to $38.00 area with next resistance possible near $38.30 a Fibonacci level. RSI stabilizing near 50 suggests recent correction may be near an end with the underlying uptrend still intact.
US Dollar Index is breaking down today taking out 94.65 to signal the start of another downleg after establishing 95.00 as a lower high and round number resistance. RSI confirms downward momentum accelerating. Next potential measured support near 92.80.
EURUSD is breaking out today, driving up off a successful retest of $1.1300 as new Fibonacci support, through $1.1340 and on into the $1.1380 to $1.1410 area with next potential resistance near $1.1460. Rising RSI confirms upward momentum increasing.
NZDUSD ran into resistance near $0.6960 a bit short of the $0.7000 round number and has dropped back toward $0.6900 in a trading correction but it remains under accumulation with its $0.6870 breakout point emerging as new support and RSI still trending upward.
AUDUSD peeked above $0.7700 briefly and has skipped back toward $0.7660 in what looks like normal backing and filling with its uptrend intact above its previous low near $0.7470. initial support possible near $0.7600.
USDCNH continues to decline, taking out 6.4795 a Fibonacci level that has been tested as new resistance and dropping toward 6.4600 with support possible near 6.4565 a channel bottom that has held so far then the 200-day average near 6.4295. RSI confirms downward momentum increasing.
USDSGD may be nearing the limits of its current selloff, breaking $1.3460 and falling toward $1.3420 then turning around and rallying back up toward $1.3480. An oversold RSI and positive divergence suggest potential for a trading bounce with next resistance possible near $1.é3520 then $1.3600.
USDJPY has levelled off near 112.50 around the centre of a range between its triple bottom near 111.00 and a Fibonacci cluster near 114.00. RSI steady just below 50 indicates a sideways pause underway within an ongoing downtrend.
EURJPY continues to advance rallying up off its 50-day average near 126.85 toward 128.20 with next potential resistance near the 130.00 round number then its 200-day average near 132.00. RSI above 50 and rising confirms upward momentum accelerating.
CADJPY peeked above 87.00 briefly trading up to 87.45 before faltering short of 87.90 Fibonacci resistance and slumping back down toward 86.60. So far this looks more like a setback than a reversal with 86.20 Fibonacci breakout point support holding and RSI still above 50.
USDCAD has a classic bear trap reversal underway, breaking down through $1.2920 and falling toward $1.2860 then turning around and taking a run at $1.3000 in what looks like a selling climax. A positive RSI divergence confirms downward pressure weakening and a trend reversal possible.