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Chart Signals: Gold, oil, currencies and stocks advance as USD and JPY weaken

Chart Signals: Gold, oil, currencies and stocks advance as USD and JPY weaken

Anticipation of earnings season and reaction to a falling USD continue to have a significant impact on trading. With USD falling, gold and other currencies have been rallying, particularly GBP, NZD and CAD. JPY continues to show signs of peaking taking some of the pressure off Japan 225 and enabling it to rebound. Indices in Hong Kong and India have also been bouncing back. Crude oil continues to recover with WTI bumping up against $40.00 resistance.

Asia Pacific Indices

Australia 200 continues to attract support above 4,900 but also continues to struggle with 5,000 round number and Fibonacci resistance which it needs to overcome to signal the start of a new uptrend. Next resistance possible near 5,055 then 5,145 if successful.

Japan 225 continues to base build in the 15,400 to 16,055 range with support moving up toward 15.7560 and initial resistance near 15,860 then 15,900. RSI rising up off 30 indicates downward pressure weakening and a trading bounce underway.

Hong Kong 50 is starting to advance again with support rising up from 20,000 toward 20,210 a Fibonacci level while the index drives into the 20,500 to 20,620 area with next resistance near 20,710. RSI back above 50 confirms momentum turning upward.

India 50 remains under accumulation with the index driving up off 7,515 Fibonacci support toward 7,680 confirmed by the RSI driving up off 50. Significant upside resistance in place near 7,755 its previous high.

North American and European Indices

US 30 held 17,500 and bounced back up toward 17,680 as it continues to consolidate recent gains in the 17,485 to 17,725 range with next upside resistance near 17,860.

US NDAQ 100 is still loitering around 4,500 a Fibonacci level, trading sideways in a channel between 4,450 and 4,555 in what looks like another consolidation phase within a step accumulation trend.

US SPX 500 is holding steady between 2,050 and 2,060 within a 2,040 to 2,080 trading range. RSI holding 50 indicates underlying accumulation remains intact.

UK 100 is testing its 50-day moving average and the top of a trading channel near 6,250 while RSI rising up off 50 indicates upward momentum picking up. Next potential resistance on a breakout appears near 6,310 a prior high. Support rises toward 6,195.

Germany 30 continues to rally up off a successful test of 9,500 support that set a higher low last week. Today the index has rallied up from near 9,560 up toward 9,720 with next potential resistance in the 9,900 to 9,935 area. RSI approaching 50 where a breakout would confirm an upturn in momentum.


Gold has broken through $1,245 with support moving up toward $1,250 as the price advances on $1,258 signalling the start of a new upswing. RSI rising up off 50 confirms an upturn in momentum. Next potential resistance on trend near $1,262.

Crude Oil WTI is struggling with $20.00 round number resistance but remains under accumulation with support rising toward $39.60 from $38.90. Next Fibonacci resistance on trend near $41.30. RSI indicates upward momentum still increasing.


US Dollar Index is testing the bottom of its 94.00 to 95.00 trading range with next potential measured support on a breakdown possible near 93.00 then 92.60.

EURUSD is still hanging around $1.1400 within a $1.1330 to $1.1460 zone where it has been consolidating a recent rally. Higher lows and a negative RSI divergence send conflicting signals.

NZDUSD appears to be resuming its uptrend, rallying up off a higher low near $0.6770 to test $0.6870 with next upside resistance after that possible near$0.6970. RSI rising up off 50 confirms underlying accumulation intact.

AUDUSD is holding steady just above the middle of its $0.7500 top $0.7700 trading range with initial resistance near $0.7630. RSI holding 50 confirms current trading looks to be a normal pause within an ongoing uptrend.

USDCNH has dropped back under 6.4795 a Fibonacci level as it continues to bounce around between 6.4565 and 6.5000 in what looks like a pause within an ongoing downtrend.

USDSGD has dropped back into the lower half of the $1.3400 to $1.3600 range near $1.3440 with resistance falling toward $1.3500 as its downtrend resumes. Next measured support on a breakdown possible near $1.3200.

USDJPY retested 107.60 to complete a short-term double bottom and has bounced back toward 108.30 with next resistance possible near 109.10 then 110.00. Oversold RSI indicates potential for an upward correction.

EURJPY has stabilized near 123.10, above its previous low which was closer to 122.00 but forming what may become a double bottom with RSI bottoming at a higher low to indicate downward pressure easing off.

CADJPY continues to stabilize above 82.45 Fibonacci support trading near 83,75 with next potential resistance in the 84.45 to 84.55 area near a Fibonacci test and the 50-day average. RSI bouncing back up toward 50 suggests downward pressure weakening.

USDCAD has retested $1.3000 as a lower high and then dropped under $1.2900 while RSI continues to fall away from 50 confirming its downtrend has resumed with next potential support near $1.2890 then $1.2840 on trend.

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