Traders have gone into risk off mode today sending USD and JPY higher (JPY pairs lower) while Crude oil, GBP and other currencies have been falling. While GBP pairs are looking overextended, head and shoulders patterns in AUD and SGD suggest, plus USDCAD back above $1.3000 suggest that we could be heading into a stronger USD phase.
Asia Pacific Indices
Australia 200 continues to trend downward sliding from a lower high near 5,290 toward 5,200 with next potential support near 5,175 a Fibonacci level then 5,095. RSI back under 50 confirms momentum turning downward again.
Japan 225 is rolling downward again. RSI faltered short of 50 and has started to decline again indicating downward pressure increasing. Index has broken a Fibonacci level near 15,555 and dropping toward the 15,390 to 15,440 area with next potential support near 15,260 then 15,000.
Hong Kong 50 failed to hold above 21,000 and has started to fall back again dropping toward the 20,650 to 20,700 area with next support near 20,545 then 20,210 both Fibonacci levels. RSI testing 50 where a break would confirm a downturn.
North American and European Indices
US 30 is rolling over a bit having run into resistance at the 18,000 round number once again, slipping back into the 17,800 to 17,900 area with next support at the 50 day average near 17,750. RSI falling toward 50 suggests a downswing starting within a sideways trend.
US NDAQ 100 ran into resistance at a lower high near 4,455 and has dropped back into the 4,385 to 4,400 area with next potential support near 4,345 a Fibonacci level.
US SPX 500 has slipped back under 2,100 having met resistance near 2,112 again. It is currently testing its 50-day average near 2,080 with next support near 2,066 then 2,050. RSI suggests a downturn pending.
UK 100 is bouncing around in the 6,500 to 6,560 range having encountered resistance near 6,635 recently. RSI rolling over suggests upward momentum weakening opening the potential for a retest of support near 6,450 a recent breakout point.
Germany 30 remains under pressure falling for a second straight day after peaking at a lower high near 9,820 which was way short of 10,000 dropping into the 9,470 to 9,530 range with next potential support near 9,440 then 9,225. RSI faltering short of 50 and falling again indicates downward pressure increasing.
Gold is retesting resistance near $1,357 which could end with a breakout or a double top. Overbought RSI suggests a correction possible with initial support near $1,353 then $1,341. Next measured resistance possible near $1,380.
Crude Oil WTI has been slammed Tuesday falling from near $48.40 down through $48.10 a Fibonacci level then its 50-day average near $47.30 and on into the $46.10 to $46.60 area with next potential support near $45.55 then the $45.00 round number. RSI back under 50 confirms a downswing underway.
US Dollar Index continues to consolidate its recent rally in the 95.40 to 96.60 range with RSI holding steady above 50 confirming underlying upward momentum.
EURUSD’s latest bear market rally failed near $1.1180 and 50 on the RSI. The pair has turned back downward falling back under its 200-day average near $1.1100 and on toward $1.1070 with nest potential support near $1.1000 then the June low near $1.0900.
EURGBP is breaking out today, clearing 0.8400 and taking a run at 0.8500 where it appears to be encountering round number resistance. RSI getting really overbought growing the potential for a snap-back correction.
GBPUSD is under pressure again today, taking out a closing low near $1.3200 and an recent intraday low near $1.3100 then falling to test the $1.3000 round number trading into the $1.3020 to $1.3060 area. RSI oversold but confirming downward momentum for now.
NZDUSD has been knocked back down toward $0.7140 from $0.7220. Lower highs in both the RSIO and the pair indicate upward momentum fading and a downturn starting with next potential correction support near $0.7100 then $0.7020 a Fibonacci test.
AUDUSD has dropped back under $0.7500 falling from $0.7550 toward $0.7455 and appears to have carved out the right shoulder of a head and shoulders top (confirmed by one in the RSI) with initial support at the 50-day average near $0.7390 and neckline plus 200-day average support near $0.7290.
USDSGD appears to be carving out a head and shoulders bottom bouncing up off a higher low near $1.3400 and regaining $1.3500 with neckline resistance and the 50-day average in place near $1.3625.
USDJPY remains in a steady downtrend continuing to fall away from 103.00 into the 101.60 to 101.90 area with next potential support tests near 101.00 then the big 100.00 round number.
GBPJPY is retesting support near 133.40 which could end in a breakdown or a double bottom. Oversold RSI suggests a bounce possible but a test of 130.00 remains possible. Initial resistance on a bounce possible near 134.20 then 136.40.
EURJPY has a new downleg underway falling sharply away from a lower high near 114.65 under 113.00 and on toward 11.240 with next potential support near the 110.00 round number and the June low near 109.35.
CADJPY failed to retake 80.00 and has turned downward again diving toward 78.20 with next potential support near 77.75 then the June low near 76.00. RSI confirms downward pressure increasing again.
USDCAD is bouncing around its 50-day average near $1.2900 climbing from near $1.2880 toward $1.2990 to test $1.3000 a round number and Fibonacci level with next potential resistance near $1.3100. RSI back above 50 confirms an upswing underway.