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Chart Signals: Dollars under pressure, JPY pauses oversold indices try to stabilize

Chart Signals: Dollars under pressure, JPY pauses oversold indices try to stabilize

AUD has been breaking down today, but the Australia 200 appears to be stabilizing.  Indices have been trying to rebound looking oversold on the RSI but remain in downtrends as well. JPY may be pausing as well after a big rally. USDCNH is coming off a big downturn and testing a previous breakout point.

Asia Pacific Indices

Australia 200 is trying to level off near 4,900 holding channel support near 4,870 for now with next support on a break near 4,.790 the August low and initial resistance on a rebound possible near 4,920 then 4,950 and the 5,000 round number.

Japan 225 has bounced up off of 17,000 finding support near 17,070 and rallying up into a 17,150 to 17,350 range with next potential resistance near 17,535. Oversold RSI suggests recent selloff may have been overdone.

Hong Kong 50 is hanging around the 20,000 round number trying to decide whether to stabilize, rebound or break down further. Next potential support near 19,860, with initial resistance near 20,100. RSI getting oversold suggests potential for a trading bounce.

India 50 has started to rebound after completing a bear trap washout below 7,500. It has moved up into the 7,550 to 7,590 range with next potential resistance near 7,615 then 7,715. A positive RSI divergence indicates downtrend pulses weakening.

North American and European Indices

US 30 appears to be hammering out a bottom today, first diving below 16,300 toward 16,175 then bouncing off a higher low near 16,230 in a second selloff up toward 16,325. Initial resistance appears near 16,430. Oversold RSI suggests potential for a trading rebound.

US NDAQ 100 has rallied backup into the 4,240 to 4,290 area approaching 4,310 Fibonacci resistance after finding support near 4,225. An oversold RSI and bullish bear trap washout suggest potential for a bounce.

US SPX 500 successfully tested support at the 1,900 round number twice today and has been on the rebound again climbing up toward 1,915 with more resistance possible near 1,925 then 1,940. Oversold RSI suggests a trading bounce possible, but if it does turn lower, next support may appear near 1,870.

Germany 30 appears to be in the process of flushing out weak hands. The index rallied up out of a bear trap reversal below 9,700 to start the week, and has found support at a higher low near 9,790 after running into resistance near 9,960. It appears to be moving into a sideways range around 9,890 a Fibonacci level.

UK 100 successfully retested channel support near 5,855 twice today and has been on the rebound, climbing toward 5,880 with next resistance possible near 5,940 then the 6,000 round number .


Gold has slipped back under $1,100 while it continues to consolidate recent gains and its breakout from a head and shoulders base over $1,086. Initial support appears near $1,095 with resistance enar $1,104.

Crude Oil WTI keeps trending lower, sliding below $32.50 and then taking out $31.40 which has become new resistance with next support possible near $30.60 then the $30.00 round number. RSI oversold but rebound potential appears limited.


US Dollar Index remains stuck below the 100.00 round number in a 97.80 to 99.40 range, trading recently near 98.50. RSI steady near 50 confirms sideways momentum.

EURUSD is sitting just below the middle of its $1.0800 to $1.1000 trading channel having run into resistance near $1.0970 then $1.0900 and held support at a higher low near $1.0850. RSI near 50 confirms a consolidation phase underway.

NZDUSD remains under pressure, falling away from $0.6660 where it broke an uptrend line toward a test of the $0.6500 round number. A failure would signal another downleg that could potentially test$0.6430 to $0.6320 with resistance falling toward $0.6555.

AUDUSD is breaking down today, taking out the $0.7000 round number and then retesting it as new lower resistance. Next potential support at the August low near $0.6900.

USDCNH has turned sharply back downward, falling back to retest 6.6000 a 23% retracement of the advance from August as it corrects an overbought RSI and unwinds last week’s big gains. If this holds, the underlying uptrend remains intact, while a break would signal the start of a new downtrend with next potential support near 6.5655 then 6.532.

USDJPY has stabilized in the 117.20 to 117.60 range having dipped down below 117.00 briefly and then rebounding in a bear trap washout. Oversold RSI suggests potential for a pause or a bounce in the near term.

EURJPY has stabilized in the 127.00 to 129.00 range where it has paused to work off an oversold RSI. A symmetrical triangle forming suggests a consolidation phase within an ongoing downtrend.

CADJPY is breaking down again, taking out 82.80 to signal the start of a new downleg, and then falling into the 82.30 to 82.70 area with next measured support possible near 81.40. RSI really oversold so a bounce possible at some point but who knows when?

USDSGD is starting to backslide, having failed to hold above $1.4430 resistance in a possible bull trap peak. RSI falling away from 70 suggests upward momentum peaking and a correction starting with initial support near $1.4355 then $1.4315.

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