The US Dollar came under pressure again Monday, lifting the lid off of other currencies. While breakouts by Gold and EUR captured the spotlight, Other currencies like AUD, SGD, NZD and JPY have also been gaining on the greenback. Meanwhile, it looks like any hurricane related bump in energy markets may already be over with WTI selling off and gasoline failing to break through channel resistance.
Asia Pacific Indices
Australia 200 continues to trend sideways between 5,655 and 5,825 recently trading near 5,700 plus its 50 and 200-day averages. RSI bouncing around 50 confirms neutral momentum.
Japan 225 is still testing its 200-day moving average near 19,425, trading between 19,310 and 19,560. RSI suggests downward pressure starting to ease but it’s still too early to tell if this is a base forming or a pause within a bigger downtrend.
Hong Kong 50 peeked up above 28,000 briefly but was unable to hold above that level, sliding back from 28,080 back toward 27,880. RSI topping out at a lower high creating a negative divergence indicates upward momentum is slowing and the index could be peaking. Initial support near 27,65 in a pullback.
North American and European Indices
US 30 keeps drifting downward with resistance falling toward 21,900 from 22,000 and the index sliding toward 21,780. Next potential support appears near 21,695 then 21,580.
US SPX 500 has stabilized near 2,444 below 2,454 resistance but above support near 2,436 and 2,416. RSI under 50 and lower highs for the index indicate distribution.
US NDAQ 100 continues to trend lower, sliding away from 5,855 lower resistance and testing its 50-day average near 5,825. Meanwhile, The RSI has fallen under 50 to signal a downturn in momentum. Next potential support appears near 5,800 then 5,745.
UK 100 is closed for a holiday
Germany 30 remains under distribution with the RSI stuck below 50 indicating downward momentum and the pair stuck below 12,240. Recently trading near 12,125, a break of the 12,000 round number along with its 200-day average would signal the start of a new downleg with next potential support near 11,800 a 38% Fibonacci retracement of its previous uptrend.
Gold has a major big breakout from a long-term channel underway today, clearing $1,300 for the first time in nine months to signal the start of a new upleg. Rising RSI indicates increasing upward momentum. Gold has advanced on $1,310 with next potential resistance near $1,330.
WTI crude oil ran into resistance at a lower high near $48.00 and has dropped back toward $46.55, accelerating downward through the day and breaking below its 50-day average. RSI turning back under 50 indicates turning downward again. Next support in place near $45.30 and the 50-day average
Gasoline peeked up above $1.70 but failed to hold above it for a third time and dropped toward $1.68 in a bearish reversal. Rising RSI indicates upward momentum increasing but this could change. Initial support tests in a pullback possible near $1.68 then $1.63.
Copper continues to climb, with support rising toward $3.06 from $3.00. Next potential resistance appears near a measured $3.20. An overbought RSI and a negative divergence, however, indicates slowing upward momentum in an overextended market, meaning that it wouldn’t take much to spark a downward correction.
US Dollar Index is breaking down today, taking out 92.40 to signal the start of a new down leg on trend. RSI falling away from 50 confirms increasing downward momentum. Next measured does not appear until closer to 90.80.
EURUSD continues to climb following a successful retest of Friday’s $1.1900 breakout point as new support. RSI confirms upward momentum still increasing. Next resistance appears near the $1.2000 round number then a measured $1.2115.
GBPUSD ran into resistance at its 50-day average near $1.2940 and has dropped back toward $1.2925. So far this looks like a minor setback in a rally up off of $1.2785 but the RSI still neds to retake 50 to call off a bigger downtrend.
NZDUSD still appears to be forming a base between $0.7190 and $0.7275 with RSI indicating downward pressure has started to ease. A breakout from this Fibonacci trading channel or the RSI over 50 would signal the start of a new upswing with next potential resistance near $0.7335.
AUDUSD appears to be resuming its uptrend following a correction. RSI rising up off 50 indicates upward momentum re-accelerating. Support moves up toward $0.7920 from $0.7860, while the pair advances on $0.7965 with next resistance possible near $0.8000 then $0.8065.
USDSGD is testing the bottom of a $1.3540 to $1.3700 trading range. Resistance falls toward $1.3575. Next potential support tests on a breakdown appear near $1.3500 then $1.3430. RSI falling away from 50 indicates downward pressure increasing.
USDJPY holding steady near 109.00 trading between 108.60 and 110.00 with additional support near 108.10 the April low. RSI steady below 50 indicates this is likely a common pause for a rest within an ongoing downtrend.
GBPJPY has regained 140.00 and continues to turn back upward, with support moving up toward 140.40 and the pair advancing on 141.40. RSI climbing toward 50 indicates downward pressure easing and an upturn pending. Next potential resistance near 141.85 a Fibonacci level then the 200-day average near 142.50.
EURJPY appears to be coming back under accumulation with support rising toward 130.00 from 129.00. RSI breaking out of a downtrend and regaining 50 signals momentum turning back upward. Next potential resistance near 131.35 then a measured 134.70.
USDCAD is still trending downward, with the pair confirming Friday’s breakdown below $1.2500. RSI falling away from 50 confirms increasing downward momentum. Next potential support at the July low near $1.2450 then $1.2425, which could end in a double bottom of the start of a new downleg.