Overall, it has been a day of consolidation for world markets. Indices continue to struggle making headway but are also refusing to break down despite bearish RSI signals. Two markets that have come under significant pressure today are gold and NZD with the latter breaking down under the $0.7000 round number. AUD is still holding above $0.7500 for now.
Asia Pacific Indices
Australia 200 is hanging around 5,750 again holding above 5,700 and its 50-day average but still stuck below resistance near 5,800 then 5,820. RSI sitting on 50 indicates underlying uptrend remains intact.
Japan 225 is still drifting lower within a 19,000 to 19,675 trading range recently sliding under 19,400 toward 19,360. RSI bouncing around 50 indicates a sideways trend. Initial support possible at the 50-day average near 19,240.
Hong Kong 50 appears to be stabilizing. The index has bounced up from 23,480 support toward 23,700 with next resistance possible near the 24,000 round number. RSI finding support near 50 and turning up suggests the recent correction may have run its course.
North American and European Indices
US 30 is still stuck below 21,000 drifting down from 20,970 toward 20,925. RSI still overbought but rolling over indicates potential for a correction that could be signalled by a crossing under 70. Next potential support near 20,900 then 20,830.
US SPX 500 is still struggling with 2,400 resistance falling back toward 2,370 with next potential downside support near 2,350 then 2,315 a 23% retracement of the post-election uptrend. RSI falling back under 70 signals a correction starting as upward momentum weakens.
US NDAQ 100 is currently trending sideways between 5,315 and 5,400 but has a big uptrend support line test underway today near 5,350. RSI has already broken under 70 to signal a correction starting. Next downside support should these first two tests fail appears near 5,200 a round number and 23% retracement of the recent uptrend.
UK 100 remains stuck between 7,400 resistance and 7,330 initial support trading near 7,340. A negative RSI divergence indicates recent uptrend weakening. Next support in a correction possible near 7,230 where a 23% retracement and the 50-day average cluster.
Germany 30 is still sitting just below 12,000. It remains in an uptrend with support coming in at a higher low near 11,940 but lower highs in the RSI indicate upward momentum continues to slow. Upward resistance in place near 12,065 then 12,100.
Gold has resumed its downtrend with resistance falling from $1,236 through $1,230 and on toward $1,222. RSI under 50 and falling indicates downward pressure increasing. The price has broken $1,218 a Fibonacci level and key point of support/resistance for the last two months indicating continued distribution with next potential support at the 50-day average near $1,209.
Crude Oil WTI is holding steady just above $53.00 and its 50-day average near $52.75. higher lows continue to form an ascending triangle below $54.00 with next resistance near $54.80. RSI bouncing between 40 and 60 indicates a sideways trend.
US Dollar Index remains under accumulation, still forming an ascending triangle pattern below 102.00 with support rising from 101.20 toward 101.50. Rising RSI indicates increasing upward momentum. Next upside resistance possible near 102.25 then 103.00.
EURUSD remains stuck in a sideways channel between $1.0500 and $1.0640, recently sliding back under $1.060 and $1.0585 toward $1.0560. RSI unable to retake 50 indicates this as a pause within an ongoing downtrend.
GBPUSD remains under pressure dropping from $1.2250 toward $1.2200 while falling RSI indicates increasing downward momentum. Next potential support in the $1.2080 to $1.2110 area where support could form the right shoulder of a head and shoulders base.
NZDUSD is breaking down today, taking out $0.7000, which may become resistance, and falling toward $0.6965 with next potential support near $0.6945. Falling RSI indicates downward pressure increasing but it’s getting oversold suggesting potential for a pause or bounce.
AUDUSD is still rolling over with resistance falling from $0.700 toward $-0.7600 and the pair trading near $0.7585. Next potential support appears at the 50 and 200-day averages near $0.7525 with next potential support near the $0.7500 round number. RSI under 50 but steady suggests a pause within an emerging downswing.
USDSGD has paused near $1.4100 trading between $1.4085 and $1.4155, a Fibonacci level. RSI sitting just below 50 indicates flat to slightly lower momentum. Next potential downside support near $1.4030 then $1.4000.
USDJPY is trading near 114.05 a Fibonacci level amid mixed signals. The pair recently broke out of a downtrend over 112.80 but so far advances have been contained by the 50-day average with additional resistance possible near 114.60 and 115.00. RSI bouncing around 50 indicates a sideways trend.
GBPJPY has drifted back under 140.00 toward 139.15. RSI under 50 and falling indicates downward momentum accelerating. Next potential support near 138.10 a Fibonacci level near the 200-day average then 136.50 on a breakdown.
EURJPY is still sending mixed signals. The pair has failed to retake 121.00 a Fibonacci level and the top of the current trading channel but at the same time, it continues to attract support above 120.00 and 119.75 where it recently broke out of a downtrend. RSI on 50 not helping to
USDCAD has levelled off for now in the $1.3370 to $1.3440 range pausing to work off an overbought RSI. Next resistance possible near $1.3455 and $1.3500 with next potential support near $1.3325 and $1.3300.