The bearishness that has been overhanging markets for the last couple of days appears to be dissipating. USDJPY successfully retested its recent low and then rebounded while a rally in gold faltered near $1,250 and turned into a round trip. Higher lows and rebounds in crude oil and major indices, particularly in the US30 where a hammer candle has appeared suggests bears may be getting tired again and the recent correction winding down.
Asia Pacific Indices
Australia 200 has bounced back up toward 4,890 after being pounded down to 4,825 where support emerged at a higher low, encouraging signs. It needs to retake 4,935 and then 5,000 to call off its recent downdraft. RSI bouncing around 50 indicates a sideways trend emerging.
Japan 225 held 15,500 to establish a higher low on trend and has rallied back up toward 15,800. T needs to retake 16,000 to call off the recent rollover and confirm an upturn with next potential resistance at previous highs near 16,365.
Hong Kong 50 broke 19,000 and fell down into the 18,820 to 18,880 area but remains above 18,710 and 18,650 the tops of old gaps that surround an island bottom. RSI has fallen back under 50 a sign downward pressure may be increasing. .
India 50 broke 7,055 a Fibonacci level that may become lower resistance and is currently testing 7,000 with next potential support near 6,985 6,945 and 6,835. RSI falling away from 50 confirms downtrend pressure resuming.
North American and European Indices
US 30 shrugged off early weakness to establish a higher low near 16,155 and has rallied back up toward 16,420 with support rising toward 16,300. RSI holding above 50 confirms underlying uptrend intact. Next resistance possible near 16,455 a Fibonacci test. Hammer candle suggests bears may be losing their grip.
US NDAQ 100 successfully retested the bottom of a 4,100 to 4,225 trading channel between two Fibonacci levels and has rallied back up toward 4,170 with support climbing toward 4,150. RSI holding 50 confirms sideways trend.
US SPX 500 held 1,900 support on a retest and has bounced back up toward 1,920 while still facign resistance near 1,940 where a Fibonacci level clusters with the 50-day average. RSI holding 50 confirms underlying uptrend intact.
Germany 30 has been trying to recover from early weakness bouncing back from 9,130 toward 9,250 but it needs to retake 9,345 a Fibonacci level to call off the recent breakdown and confirm an upturn. RSI falling back from 50 suggests momentum turning increasingly downward.
UK 100 found support near 5,840 and has bounced back up through 5,900 and on toward 5,920 with net resistance looming near 6,000. RSI drifting toward but holding above 50 suggests momentum shifting sideways.
Gold is retesting $1,235 where it broke out of a symmetrical consolidation triangle as new support after rallying up toward $1,250 and then sliding back. RSI under 70 and drifting lower indicates upward momentum weakening indicating channel resistance near $1,262 may hold and a retest of $1,211 Fibonacci support remains possible.
Crude Oil WTI held $28.70 channel support and has bounced back up into the $29.80 to $30.30 range around the $30.00 round number. Next resistance possible near $31.35. RSI trading around 50 indicates a sideways consolidation trend.
US Dollar Index continues to rebound, driving up from a higher low near 97.40 toward 98.00 with next potential resistance at its 50-day average near 98.15 then 99.00. RSI back above 50 confirms momentum turning upward.
EURUSD is hanging around the $1.1000 round number trading above $1.0970 Fibonacci support and below $1.1020 and its 200-day average near $1.1050. RSI slipping under 50 suggests momentum turning downward. Next support near $1.0920.
GBPUSD bounced back up toward $1.3960 having found support near $1.3880 but remained short of $1.4000 confirming a breakdown and start of a new downleg. That being said,. RSI is getting oversold again and it has not confirmed the recent low in the price, setting up a positive divergence that suggests selloff may be getting overdone.
NZDUSD continues to trade between $0.6560 and $0.6730 allying recently from $0.6600 up toward $0.6660. RSI holding 50 indicates underlying uptrend continues.
AUDUSD has successfully held uptrend support in both the pair and the RSI and has started to rise again, advancing on $0.7210 from $0.7150 with resistance looming near $0.7300 the top of an ascending triangle base, and its 200-day average near $0.7280.
USDCNH is holding steady near 6.5325 a 38% Fibonacci retracement of its previous uptrend. An ascending triangle back continues to build between 6.4830 and 6.5465.
USDJPY successfully retested 111.00 to complete a double bottom and has bounced back toward 111.80 with next resistance tests possible near 112.25 then 113.00. RSI oversold and near a triple bottom suggests potential for a significant trading bounce.
EURJPY dipped under 123.00 toward 122.80 and has started to bounce back in what could become a key reversal. Oversold RSI suggests potential for a bounce. Initial resistance possible near 123.60 then 124.40.
CADJPY held the 80.00 round number, retesting 80.50 support and bouncing back up toward 81./50 with next resistance possible near 82.45 a Fibonacci test.
USDSGD failed to rally above $1.4100 and has fallen back toward $1.4040 with downside support in place near $1.4000 then the 200-day average near $1.3940.