The US Dollar index has turned decisively downward, completing a bearish Evening Star candlestick formation. This has enabled defensive havens like gold and JPY to rebound. AUD, NZD, EUR and GBP have also been bouncing back on this development. Meanwhile US indices and the Japan 225 continue to look overbought and vulnerable to a correction although the Australia 200 and Hong Kong 50 continue to climb for now.
Asia Pacific Indices
Australia 200 is breaking out today, clearing 5,800 to call off a double top and signal the start of a new upleg. Next potential resistance near 6,000 where a round number and a measured move converge. RSI sending mixed signals, rising but potentially forming a negative divergence.
Japan 225 continues to roll over, dropping back from a lower high near 19,445 toward 19,210 and a test of the 50-day average with next potential support near the 19,000 round number. RSI bouncing between 40 and 60 suggests a sideways trend emerging between 18,785 and 19,555.
Hong Kong 50 is breaking out today, clearing 24,000 and advancing on 24,110 with next potential resistance near 24,140 then 24,420. RSI still increasing but also overbought so uptrend remains intact for now but could change.
North American and European Indices
US 30 is having an inside day dropping back toward 20,575 giving back half of its previous rally up from 20,500 toward 20,650 RSI really overbought and rolling over suggests upward momentum peaking and a correction possible.
US SPX 500 has dropped back toward 2,340 after completing a measured move up toward 2,250 from 2,232 which looks like next potential pullback support. Overbought RSI turning downward suggests upward momentum may be exhausted and a correction possible.
US NDAQ 100 has dropped back toward 5,290 after encountering resistance near 5,312, digesting recent gains. RSI is really overbought but has been confirming upward momentum to date. Next support in a pullback possible near 5,284 then 5,260.
UK 100 has dropped back under 7,300 after peaking at a lower high near 7,320 treading in the 7,270 to 7,290 area. A lower high in the RSI confirms upward momentum weakening. Next potential support appears near 7,260 then 7,200.
Germany 30 is starting to roll over, falling away from lower highs in both the index and the RSI, a sign that momentum has peaked and a correction starting. Resistance falls from 11,880 toward 11,780 with next support possible near 11,700 then the 50-day average near 11,555.
Gold has popped back above $1,230 into the upper half of its $1,215 to $1,245 trading range recently between $1,235 and $1,242. RSI confirms a sideways consolidation phase underway within a larger uptrend.
Crude Oil WTI continues to attract support above its 50-day average near $52.25 while remaining stuck below $53.85 resistance. Recent trading in the $52.60 to $53.40 zone.
US Dollar Index has completed a bearish an evening star candle pattern dropping back under 101.00 toward 100.70 after a failed attempt to clear its 50-day average near 101.35 on Wednesday that created a shooting star/bull trap. The index also broke an uptrend falling under 101.00. Next support possible near the 100.00 round number. RSI rolling back under 50 suggests momentum downturn.
EURUSD is breaking out of a short term downtrend, rallying up off a successful test of its 50-day average near $1.0590 back up toward $1.0620 with next resistance possible near $1.0660 then $1.0670. RSI needs to retake 50 to confirm the upswing.
GBPUSD is turning upward again, trading near $1.2500 as it bounces up off a successful retest of 50-day average support near $1.2410. Next potential resistance near $1.2580. RSI holding 50 indicates underlying accumulation remains intact.
NZDUSD continues to climb with the pair regaining $0.7200 and the RSI regaining 50 indicating an upturn underway. Recently trading near $0.7235, next potential resistance appears near $0.7270 then $0.7330.
AUDUSD is bumping up against $0.7725 the top of a trading channel with support rising toward $0.7690 from $0.7630. Next potential resistance on a breakout near $0.7780 with next support near $0.7600.
USDSGD continues to fall within a $1.4155 to $1.4255 trading range recently near $1.4170. RSI holding under 50 and a lower high for the pair confirms ongoing distribution. Next potential support on a breakdown near $1.4085 a Fibonacci level.
USDJPY is turning back downward decisively. Having retested resistance at its 50-day average near 115.00, the pair has plunged back down through 114.05 on its way toward 113.10 with next potential support near 112.35. Initial resistance falls toward 113.40.
GBPJPY is still hanging around 142.25 a Fibonacci level trading between 141.00 and its 50-day average near 143.00. RSI rolling back under 50 form a lower high signals momentum turning downward opening the potential for a retest of 140.00 200-day average and round number support.
EURJPY continues to steadily trend lower with lower highs in the pair and the RSI indicating increasing distribution. Resistance has dropped toward 121.00 a Fibonacci level with next potential support near the 120.00 round number and then 119.05.RSI stuck under 50 confirms downward momentum.
USDCAD continues to form a descending triangle of lower highs above support in the $1.2975 to $1.3000 zone. The pair remains below $1.3100 falling into the $1.3020 to $1.3070 zone. RSI falling away from 50 indicates downward pressure increasing. Next potential support on a breakdown near $1.2900.