Sterling has staged a series of huge rallies breaking out against USD and JPY. EUR has also been climbing along with gold. The UK 100 has been breaking down, completing a head and shoulders top while other major indices also appear to be under distribution particularly the Germany 30 and Hong Kong 50 which have broken big round numbers.
Asia Pacific Indices
Australia 200 is breaking down today. Support failed to come in near 5,835 a previous breakout point and the index has dropped to test its 50-day average near 5,800 with next potential support near 5,705 then 5,665 on a breakdown. RSI falling under 50 confirms the downturn in momentum.
Japan 225 is turning back downward after a rebound attempt failed at a lower high near 18,500. RSI near oversold suggests it may still need a rest and could consolidate between there and its 200-day average near 18.000 with initial support near 18.205.
Hong Kong 50 is breaking down today taking out the 24,000 round number and its 50-day average to complete a bearish descending triangle. RSI falling under 50 confirms the downturn. With the 23% retracement level a speed bump on the way toward 23,825, next potential support appears near 23,445 the March low and a 38% retracement of the previous uptrend. Next potential support near
North American and European Indices
US 30 remains under distribution. Monday’s rally was not enough to retake the 50-day average near 20,665 and the index has started to decline again, falling toward a retest of 20,500. Meanwhile, RSI still stuck below 50 confirms current downward momentum and a falling channel. Next potential support near 20,270 a 23% retracement of the previous advance.
US SPX 500 continues to trend back downward, with resistance falling toward the 50-day average near 2,356 and a descending triangle forming above 2,325 with next support after that at the 23% retracement level near 2,312 then 2,300. RSI trending lower and falling under 50 confirms momentum turning increasingly downward.
US NDAQ 100 is holding support at its 50-day average near 5,345 for now but looks vulnerable with the index stuck under 5,400 and the RSI trending down toward 50. Next potential support on a breakdown possible near 5,300 then 5,265 a 23% retracement of the post-election rally.
UK 100 is breaking down today, taking out the 7,260 neckline of a head and shoulders top to complete the bearish pattern diving down through 7,200 and falling on toward 7,125. Next potential support near 7,100 then the 7,000 round number. RSI falling away from 50 confirms momentum downturn.
Germany 30 is breaking down today, taking diving from 12,165 a former breakout point that has become resistance and falling down through 12,000 to complete a bearish descending triangle. RSI breaking under 50 confirms momentum turning downward. Next potential support near 11,960 near the 50-day average then 11,835.
Gold has resumed its uptrend following a successful test of $1,275 Fibonacci support, advancing from $1,280 toward $1,290 but it remains stuck below $1,300 round number resistance and with the RSI overbought it may need to continue digesting recent gains.
Crude Oil WTI is rolling down from a classic rounded top trading back under $53.00 with resistance falling toward $52.70, the pair trading near $52.50 and next potential support near $52.10 then $51.10 the 50-day average. RSI falling back toward 50 confirms upward momentum weakening.
US Dollar Index is breaking down today, with downward momentum increasing after the index broke the 100.00 round number on its way toward 99.45. Next support tests possible near 99.35 then 99.00 and 98.60. RSI has already broken and retested 50 to confirm momentum turning downward.
EURUSD is turning back upward rallying off of $1.0400 back up toward $1.0720 a Fibonacci level with nest potential resistance after that near $1./0800 then a Fibonacci cluster near $1.0830. RSI driving back up above 50 confirms momentum turning upward.
GBPUSD has a major and explosive breakout underway today. The pair has soared up off of $1.2500 blasting through its 200-day average near $1.2620 then $1.2700 to complete a head and shoulders base plus a 23% retracement of the post Brexit selloff. The pair soared up toward $1.2900 with next resistance near $1.3000 before getting a bit overbought and settling back into the $1.2820 to $1.2860 zone with next support near $1.2780.
NZDUSD continues to swing back upward with $0.7000 emerging as support to confirm a breakout while the pair advances on $0.7040. RSI above 50 and rising confirms momentum upturn. Next potential resistance near $0.7050 and the 50-day average then $0.7100.
AUDUSD is turning back downward after a rebound attempt failed at a lower high near $0.7600 and short of its 50-day average. RSI failing to retake 50 confirms broader downward momentum. Next potential support in the $0.7470 to $0.7500 area with next resistance near $0.7625.
USDSGD is bouncing around between $1.3950 Fibonacci support and the $1.4000 round number trying to decide what to do next. RSI remains below 50 indicating a downtrend with next support possible near $1.3920 or $1.3880. Next rally resistance near $1.4040.
USDJPY remains in a downtrend with a Fibonacci cluster in the 109.00 to 109.25 area containing rebound attempts and the pair trading near 108.60 and its 200-day average while working off an oversold RSI. Next downside support possible near 108.15 its recent hammer low.
GBPJPY has a huge bullish reversal underway today. The pair had broken under 136.70 but found support near 136.00 and has subsequently soared up toward 139.40 breaking out of a downtrend near 138.00 and challenging 140.00. RSI regaining 50 confirms momentum turning back upward.
EURJPY is turning back upward, climbing out of yesterday’s hammer bottom that saw it rally up off of 115.00. Today support has moved up toward 115.80 with the pair advancing on 116.50 with next potential resistance near 116.50 then 117.40. RSI back above 30 from oversold confirms recent downtrend over and a rebound starting.
USDCAD is turning back upward today with the pair regaining $1.3300 and advancing on $1.3380 while the RSI has regained 50 to confirm the upturn. Next potential resistance appears in the $1.3400 to $1.3450 zone. Support rises toward $1.3340