Technical signals are turning positive across a number of major markets today, a sign of increasing breadth for the current recovery. Indices have been particularly strong with Japan 225, India 50 and Hong Kong 50 all breaking out, along with WTI crude oil and GBP while AUD tests key pattern resistance.
Asia Pacific Indices
Australia 200 has bounced back up above 5,000 but needs to power through a resistance zone between 5,055 and 5,075 co signal the start of a new uptrend. Next resistance near 5,135 then 5,200 if successful. RSI indicates momentum turning upward again.
Japan 225 continues to climb in a rising channel of higher highs and higher lows, clearing 16,500 and driving on toward 16,815 a Fibonacci level before settling into the 16,630 to 16,710 area. RSI breaking out over 50 confirms momentum turning upward.
Hong Kong 50 is breaking out of a ascending triangle base today, clearing 16,695 which may become support and taking a run at the 20,000 round number trading in the 19,940 to 20,020 area. RSI above 50 and rising confirms increasing upward momentum.
India 50 is breaking out of a double bottom base clearing 7,250 and rallying into the 7,300 to 7,330 zone. RSI retaking 50 confirms the upturn. Next potential resistance near 7,515 then a measured 7,650.
North American and European Indices
US 30 is trading in the 16,770 to 16,890 range around 18,835 a Fibonacci level confirming yesterday’s rally and breakout. Next upside resistance near 17,000 with next support near 16,715.
US NDAQ 100 has encountered some resistance near 4,360 just above 4,345 a Fibonacci level but remains under accumulation with RSI rising and support moving emerging between 4,300 and 4,330.
US SPX 500 has levelled off near 1,975 a Fibonacci level, pausing to consolidating yesterday’s big rally up from below 1,940 before rising back toward 1,982. Next upside resistance at the 2,000 round number with initial support near 1,960.
Germany 30 is breaking out again, clearing 9,725 near a Fibonacci level and 50-day average, and successfully retesting the breakout point as new support. Upside resistance appears near 9,780 then 9,830. RSI confirms upward momentum increasing.
UK 100 has dropped back toward 6,120 from 6,220 and then rebounded toward 6,150 in what looks like a normal trading correction following a big rally yesterday. 6,100 former resistance has emerged as new support.
Gold bounced up off of $1.230 toward $1,242 as it continues to trend sideways in a symmetrical triangle consolidation pattern. RSI indicates momentum shifting from upward to sideways as it works off a really overbought RSI. Support and resistance near $1,211 and $1,248 respectively.
Crude Oil WTI is breaking out today, clearing $32.40 to complete a double bottom base and signal the start of a new uptrend then driving on toward the $33.00-$33.20 area with next resistance possible near $33.85. RSI confirms increasing upward momentum.
US Dollar Index has levelled off in the 98.20 to 98.50 area consolidating recent gains with next resistance possible near 99.00 and more support near 98.00. RSI confirms upward momentum increasing.
EURUSD continues to pause in the $1.0850 to $1.0900 area following a decline from 1.1060 last week. RSI indicates downward pressure intact so a retest of $1.0790 Fibonacci support remains possible.
GBPUSD has regained $1.4000 climbing up from $1.3920 and rallying on to challenge $1.4080 resistance followed by $1.4140. RSI climbing up out of a positive divergence indicates downward pressure weakening and momentum turning upward.
NZDUSD has climbed up from $0.6630 toward $0.6680 as it continues to bounce ar4ound between $0.6560 and $0.6730 with RSI confirming sideways momentum.
AUDUSD is on the move upward again today advancing from near $0.7180 up through its 200-day average near $0.7265 and on to test $0.7300. A breakout there would complete an ascending triangle base and signal the start of a new uptrend that could test $0.7385 initially. Rising RSI confirms upward momentum accelerating.
USDCNH is hanging around 6.5550 having moved up from a Fibonacci cluster near 6.5300 with next potential near 6.5780. RSI holding 50 and rising confirms growing upward momentum.
USDJPY ran into resistance near 114.60 short of its 115.00 channel top and has been knocked back town toward 113.20 with net support possible near 112.65. If it holds 113.00 and RSI keeps creeping up toward 50 this may be a setback within an emerging uptrend.
EURJPY failed to overcome 124.40 resistance and has fallen back toward 123.20 as its latest trading bounce fades but channel support remains in place near 122.00.
CADJPY has dropped back to retest support near 84.30 and a Fibonacci level near 84.55 after encountering resistance near 85.25,RSI holding 50 signals underlying uptrend intact through what looks like a minor correction so far. Next support near 83.60 with next resistance near 86.20.
USDSGD continues to roll over, slipping back under $1.4000 and on toward $1.3970 with next potential support at the 200-day average near $1.3960 then a recent low near $1.3885. RSI remaining below 50 and falling indicates downtrend resuming.