Bulls have regained their conviction in a big way today sending depressed markets broadly higher up off of higher lows through round numbers and resistance levels. Gold broke out of a cup with handle base today but gains have also been seen in WTI, plus resource currencies like AUD, NZD and CAD.
Asia Pacific Indices
Australia 200 is bumping up against 5,000 again having rallied up from 4,930 support while RSI is testing 50 from below again. Breakouts by either or both would signal the start of a new uptrend with next resistance possible near 5,045 a 23% retracement of the 2015 decline then 5,145.
Japan 225 has regained the 17,000 round number once again, having successfully retested support near 16,500. RSI gaining on 50 indicates downward pressure weakening. Next potential resistance tests on trend near 17,265 then 17,640.
Hong Kong 50 is showing signs of life as it builds a base in a wide 18,600 to 19,500 range. RSI indicates a trading bounce underway and the index finished the day with a rally up off of 19,000 toward 19,230 indicating renewed accumulation. Next resistance on a breakout on the 20,000 to 20,030 area between a round number and a 38% retracement of the recent selloff.
India 50 continue to build a base between 7,300 and 7,500 recently trading up from 7.360 toward 7.390. It really needs to clear 7,515 a Fibonacci level to signal the start of a new uptrend.
North American and European Indices
US 30 continues to rebound, rallying up off of 15,720 through 16,000 and on toward 16,180 with support rising toward 16,110 from 16,030 a Fibonacci level. RSI turning up toward 50 indicates downward momentum weakening and an upturn pending.
US NDAQ 100 is rebounding again today, rallying up from a higher low near 4,150 up through 4,195 a Fibonacci level that may become support and on toward the 4,230 to 4,250 area with next potential resistance near 4,265 then 4,310.
US SPX 500 has successfully retested 1,855 support and has been advancing again, rallying back up above 1,900 with next potential resistance near 1,910 then 1,940 as it attempts to build a base following this month’s selloff.
Germany 30 has established support at a higher level near 9,560 and has been steadily rising over the last few hours driving back up toward 9,840 with next potential resistance near 9,890 a Fibonacci level hen the 10,000 round number. Support rises toward 9,810 RSI indicates downward pressure continues to weaken.
UK 100 successfully retested 5,760 support and has bounced back strongly, rallying up through 5,855 a former support level and on toward the 5,920 to 5,940 zone with next potential resistance near 6,000. RSI rising toward 50 indicates downward momentum fading and an upturn pending.
Gold is breaking out of a cup with handle base today, clearing $1,112 and advancing on $1,122 with next potential resistance near a measured $1,129 or $1,136 around $1,132 its 200-day average. RSI above 50 and still rising confirms upward momentum accelerating.
Crude Oil WTI retained its footing near $28.30 and has blasted back up through $30.00 into the $30.60 to $31.40 area. RSI testing 50 where a breakout would confirm that the market is washed out for now and a rebound underway with next resistance near $32.35 a 23% retracement of the downtrend that started in October.
US Dollar Index continues to trend sideways below 100.00 resistance in the 99.00 to 99.60 range with next downside support near 98.30.
EURUSD has drifted back down from $1.0870 toward the bottom quarter of its $1.0800 to $1.1000 trading channel. RSI bouncing around 50 confirms neutral trend.
NZDUSD is sitting on $0.6500 having bounced up from a higher low near $0.6415 with next resistance near $0.6540 then the 50-day average near $0.6615. RSI climbing toward 50 indicates downward momentum fading and an upturn pending.
AUDUSD has regained $0.7000 as it continues to bounce around between $0.6950 and $0.7050 while waiting for RSI to clear 50 to confirm the start of a new upswing. Next resistance on a breakout possible near $0.7100 then $0.7150 where a measured move and the 50-day average converge.
USDCNH continues to hold steady near 6.6090, a 23% retracement of its previous uptrend. RSI sitting steady just above 50 suggests a pause underway within an ongoing uptrend.
USDJPY continues to bounce around in the 116.00 to 119.00 range trying to decide if this is a pause or a base. It bounced up off of 117.50 support to keep it in the upper half of the range but RSI failing to regain 50 indicates broader downward momentum intact so signals are mixed ahead of the Bank of Japan meeting later this week.
EURJPY is holding steady near 128.60. RSI steadily rising toward 50 indicates a base forming in the 126.80 to 129.00 area.
CADJPY has paused in the 82.00 to 84.00 range to digest its initial breakout rally with a bullish engulfing candle and a rally up toward 84.40 suggesting it could be gearing up for another upleg. RSI testing 50 where a breakout would confirm a momentum upturn with next potential resistance near the 85.00 round number then 86.00-86.20 where a measured move and 50% retracement level converge.
USDSGD is still rolling over falling from $1.4300 lower resistance toward the $1.4240 to $1.4260 area with next potential support at the 50-day average near $1.4180. RSI falling under 50 confirms momentum turning back downward.
USDCAD is breaking down today with a bearish engulfing candle and RSI falling under 50 confirming the start of a new downtrend. $1.4100 support has failed and is being retested as lower resistance with next potential downside support near $1.4045, then the $1.4000 round number.