Indices continue to recover, with breakouts by the US 30 and Australia 200 from bases confirming the momentum and pattern recovery signals we’ve been getting the last few days. Oil, AUD, NZD and CAD also continue to climb, indicating a return of capital to risk markets while falling gold and JPY indicates capital leaving defensive havens. JPY starting to give back ground to USD and even EUR could take the lid off of Japan 225.
Asia Pacific Indices
Australia 200 is breaking out today, clearing 5,000 a round number and Fibonacci level that may become support with RSI clearing 50 confirming upward momentum growing. Recently trading near 5,035 next resistance appears near 5,080 then 5,145.
Japan 225 continues base building, having rallied back up above 16,000 into the 16,160 to 16,270 area but it really needs to clear 16,360 to signal the start of a new uptrend with next resistance near 16,500 and 16,900. RSI gaining on 50 indicates an upturn in momentum pending.
Hong Kong 50 is under renewed accumulation, gapping up off Friday’s close near 19,090 toward 19,370 then advancing on 19,560 with support rising toward 19,520 from 19,460. Next potential resistance near 19,710 a Fibonacci level then the 20,000 round number.
India 50 has firmed up into the 7,200 to 7,250 area and appears to be starting to recover. RSI clearing 50 would confirm momentum turning upward. Next potential resistance tests near 7,340 then 7,400.
North American and European Indices
US 30 is breaking out of a base today, clearing 16,475 a Fibonacci level and the 16,500 round number on its way toward the 16,560 to 16,60 area around its 50-day average. Next upside resistance after that near 16,835 a 50% retracement of its broad range. RSI above 50 and rising indicates upward momentum increasing.
US NDAQ 100 continues to bump up against 4,225 Fibonacci resistance where a breakout would signal an upturn with next resistance at tis 50-day average near 4,300 then a Fibonacci test near 4,345. RSI retesting 50 as support following a breakout confirms momentum turning upward.
US SPX 500 is challenging 1,940 Fibonacci resistance and its 50-day average once again with next upside tests on a breakout possible near 1,950 then 1,975. RSI indicates upward momentum accelerating.
Germany 30 is breaking out today, rallying up from another successful test of 9,345 Fibonacci support on toward 9,580 where it has paused with next potential resistance near 9,635 then 9,740. RSI regaining 50 confirms momentum turning upward.
UK 100 is testing the top of a falling channel near 6,040. A break through its previous high near 6,060 would confirm the start of a new uptrend with next resistance after that near 6,185 where a prior high and Fibonacci test converge. RSI holding above 50 indicates upward momentum intact.
Gold has dropped back from $1,218 toward $1,208 zone with next potential support near $1,202 then $1,190 and $1,180. RSI breaking an uptrend line and falling under 70 signals a correction underway while a symmetrical triangle in the price suggests consolidation.
Crude Oil WTI has regained $30.00 as it bounces up off a higher low near $28.90 and advances into the $30.70 to $31.50 area with next resistance near $32.35 a big Fibonacci test. RSI holding 50 and setting a higher low indicates momentum turning increasingly upward.
US Dollar Index is turning upward today, clearing 97.20 and advancing on through 97.50 with net potential resistance in the 98.00 to 98.15 zone. RSI testing 50 where a breakout would confirm the upturn in momentum.
EURUSD is breaking down today, taking out $1.1111 and dropping toward $1.1020 with next potential support near $1.1000 then $1.0965 where a Fibonacci test and the 50-day average converge. RSI breaking under 50 again confirms the downturn.
GBPUSD bounced off its January low near $1.4080 creating a double bottom for now but has run into lower resistance in the $1.4140 to $1.4160 area. RSI under 50 and falling indicates downward pressure increasing. Next potential downside test near the $1.4000 round number then look out below.
NZDUSD has climbed back above its 50 and 200-day averages and is testing the top of its current $0.6560 to $0.6730 trading channel. RSI above 50 and rising indicates upward momentum increasing. Next potential resistance near $0.6870 a previous high on a breakout.
AUDUSD continues to form a bullish ascending triangle base below $0.7300 and its 200-day average. Higher lows for the pair and RSI above 50 and rising indicate increased accumulation.
USDCNH is hanging around between 6.5230 and 6.5280 above 6.5000 and below 6.5325 Fibonacci resistance. RSI slowly rising toward 50 suggests momentum shifting from downward to neutral.
USDJPY is bouncing around between 112.80 and 113.20 near the middle of a 111.00 to 115.00 trading range. RSI climbing out of a double oversold bottom indicates downward momentum easing.
EURJPY is testing measured support near 124.20 trading in the 124.40 to 124.70 area. Oversold RSI suggests potential for a trading bounce that could test 125.00 or even the 126.20 recent breakdown point.
CADJPY continues to trend sideways near 82.45 a Fibonacci level having bounced up off of 81.40 and facing resistance near 83.75.
’s latest bear market rally faltered at lower highs on the pair near $1.4100 and the RSI below 50. The pair has fallen back toward $1.4000 with next potential support in the $1.3865 to $1.935 area near its 200-day average and previous low.