Traders have jumped back into the market with both feet to start the week with indices and Euro pairs gapping upward big time. Some of the gains have been whittled away in what looks like normal backing and filling but many markets remain well above where they finished last week and breakaway gaps forming. It remains to be seen if markets have more oomph or if they are already ready for a rest. Meanwhile, JPY and gold have started the week under pressure although they been able to recover some lost ground relative to the US Dollar. Round numbers being tested today include $0.7000 for NZDUSD, $0.7500 for AUDUSD, 12,500 for the Germany 30, 6,000 for the NASDAQ Composite, and others.
Asia Pacific Indices
Australia 200 continues to bounce around between 5,800 and 5,950 in what looks like a consolidation within an ongoing uptrend. RSI back above 50 confirms momentum turning upward but some resistance has emerged near 5,900.
Japan 225 continues to turn back upward out of a rounded bottom with the index regaining 18,840 former channel support. RSI regaining 50 signals momentum turning upward but the index needs to retake 19,000 to confirm with next potential resistance near 19,110 and the 50-day average.
Hong Kong 50 continues its trading bounce with RSI regaining 50 indicating momentum turning back upward. The index has advanced into the 24,200 to 24,250 area but it needs to break through 24,280 to call off a downtrend and a descending triangle. Next potential resistance near 24,365 if successful.
North American and European Indices
US 30 is turning back upward today, breaking out of a falling channel and regaining its 50-day average near 20,725 then advancing on 20,780 with next potential resistance near 20,875 then 21,000. RSI regaining 50 confirms an upswing underway.
US SPX 500 is breaking out today, clearing its 50-day average near 2,360 and calling off a descending triangle. RSI regaining 50 confirms an upswing underway within a sideways channel with next potential resistance possible near 2,382 then 2,400.
US NDAQ 100 is breaking out today, clearing 5,480 and then 5,500 to signal the start of a new upleg. Next potential resistance appears near a measured 5,620. Rising RSI confirms upward momentum accelerating.
UK 100 is accelerating upward, regaining 7,260 which may potentially call off a head and shoulders top, and advancing on 7,275. The RSI is testing downtrend resistance and the 50 level where a breakout would confirm an upturn. Next potential resistance at the 50-day average near 7,310.
Germany 30 is breaking out today, clearing its recent high of 12,380 to signal the start of a new upleg. The index has advanced on 12,470 with next resistance possible near 12,500. The RSI is not confirming the new price high suggesting slowing upward momentum.
France 40 broke out Monday, blasting through 5,150 and rallying toward 5,390 before sliding back toward the 5,280 to 5,300 area where it has been testing highs set in 2015. RSI overbought and a negative divergence suggest upward momentum could be peaking.
Commodities
Gold gapped down to start the week, dropping from $1,280 down toward $1,268 but then managed to claw its way back up toward $1,275. RSI falling toward 50 indicates upward momentum slowing and confirmation of a downturn pending.
Crude Oil WTI has recovered a bit from Friday’s huge takedown, but an inside day stuck below $50.00 and falling toward $48.90 suggests that the price is digesting losses rather than rejecting them. Next resistance near $50.55 with next support near $48.65 and the 200-day average, then $47.70 a Fibonacci level.
FX
US Dollar Index has a big support test underway near 98.70 which could end in a double bottom or a breakdown and the start of a new downleg. The index has turned down from 100.00 following a failed breakout attempt while falling RSI confirms increasing downward pressure. Next potential support near a measured 98.25.
EURUSD gapped up sharply to start the week from $1.0720 soaring up toward $1.0945. It has since been backsliding falling toward a Fibonacci cluster and its 50-day average near $1.0830, recently trading near $1.0850. Next support near $1.0775 with next resistance near $1.0870.
GBPUSD continues to consolidate recent gains bouncing around between $1.2760 and $1.2860 holding above its $1.2715 breakout point while remaining stuck below $1.2900 its recent rally high.
NZDUSD is still clinging to support at $0.7000 for the pair, the midpoint of a $0.6900 to $0.7100 sideways trading range. RSI sitting on 50 confirms sideways momentum.
AUDUSD is sitting on its 200-day average near $0.7555 above $0.7500 round number support but below 50-day average resistance near $0.7600. RSI testing 50 where a breakout would signal and upturn but continued resistance would indicate continued distribution.
USDSGD is breaking down today, taking out its 200-day average and a downtrend line near $1.3960 then taking out a Fibonacci level near $1.3950 and falling toward $1.3940. Next potential support appears near $1.3880. RSI holding under 50 confirms distribution.
USDJPY is breaking out of a base, blasting up from a Fibonacci cluster clearing 109.25 then the 110.00 round number on its way toward a test of 110.65. The pair has since turned back downward, however, sliding back under 110.00 toward 109.85. It remains to be see if the rally is over or just backing and filling. RSI still needs to clear 50 to confirm an upturn.
GBPJPY is breaking out today, clearing the 140.00 round number to signal the start of a new upleg, and advancing on 140.40 with next potential resistance near 140.80 then 142.80 a previous high. RSI above 50 and climbing confirms upward momentum increasing.
EURJPY soared to start the week from near 117.00 to a high near 121.00 before giving back about half its initial gain sliding back under 120.00 toward 119.20. Next support appears near 119.00 then the 200-day average near 117.80 with a gap intact between those levels. Rising RSI confirms increasing upward momentum.
USDCAD has resumed its uptrend following a test of $1.3410. Support has moved back up toward $1.3460 while the pair has cleared $1.3500 advancing on $1.3515 with next potential resistance near $1.3535 then $1.3590.
