Asia Pacific indices plunged to finish last week but in doing so, a number of RSI indicators moved into oversold territory. We could still be volatile to start the week but at some point we could see trading bounces for depressed markets.
Asia Pacific indices
Australia 200 is testing channel bottom support near 4,90, which could hold with a higher low emerging in the RSI. Initial resistance possible near 4,950 then 4,965 and 5,000, with next downside support possible near 4,790.
Hong Kong 50 is retesting its summer lows near 20,100 with more support possible near the 20,000 round number. RSI is getting really oversold again so a bounce appears possible with initial resistance in the 20,300 to 20,450 area then 20,620.
India 50 successfully retested 7.500 with a bear trap washout near that level. Higher lows in the RSI suggest a base may be building. Initial resistance near 7,610 then 7,690.
Japan 225 sold off again Friday diving from 18,000 after failing to retake that round number, and diving down toward the 17,235 to 17,300 zone. RSI getting oversold, so it could pause in the current range. Next downside tests and 17,135 then 17,000 should support fail.
North American and European Indices
US 30 broke 16,475 Fibonacci support after a relief rally failed at a lower high near 16,730. Support has emerged near 16,300 and a bounce appears possible with RSI oversold but should that fail, the 16,000 to 16,030 area could be tested near a round number and Fibonacci level.
US NDAQ 100 has been bouncing around between 4,270 and 4,360 finishing last week near the bottom of that range with next potential downside support near 4,195. RSI oversold so a bounce appears possible at some point.
US SPX 500 is under distribution again falling from 19,790 through 1,940 and on toward 1,920. RSI getting oversold but a low of damage has already been down. Next potential support near the 1,900 round number.
Germany 30 failed to hold above the 10,000 round number and has resumed its downward course, taking out a Fibonacci level near 9,890 on its way toward 9,750 with next potential support near 1,715 then 9,675. Initial resistance falls toward 9,825.
UK 100 has been sliding toward a potential retest of 5,855 channel support having failed to retake 6,000 confirming a recent breakdown. The index has been trading near 5,880 with initial resistance falling toward 5,940.
Gold is sitting on $1,100 which it has been retesting as new support following a breakout. Support has moved up from $1,086 to $1,098 so far with resistance emerging near $1,114 followed by a measured $1,126.
Crude Oil WTI ran into resistance near $33.75 and has dropped back toward the $32.30-$32.70 zone holding well above yesterday’s low near $31.50. RSI remains oversold indicating potential for a pause or trading bounce in the near term.
US Dollar Index continues to top out with RSI bouncing around 50 and the index bouncing around between 98.00 and 99.75 with 100.00 still looking like formidable resistance. A rally attempt on Friday failed at a lower high near 99.25
EURUSD continues to trend sideways successfully testing $1.0800 support once again and then rallying back up toward $1.0920 with resistance possible near $1.0970 a Fibonacci level then $1.1040 where prior highs and the 200-day average converge. RSI bouncing around on 50 indicates sideways momentum intact.
NZDUSD continues to weaken, having retested former trend support near $0.6685 as new resistance and confirming a recent breakdown. RSI under 50 and falling confirms downward pressure increasing. Currently near $0.6550 a retest of $0.6500 or even the November low near $0.6445 appears possible.
AUDUSD is breaking down again, taking out $0.7000 for the first time in three months and falling toward $0.6975 with next potential support near $0.6940 then $0.6900. RSI indicates downward momentum still accelerating.
USDCNH has stabilized in the 6.6750 to 6.7000 area consolidating recent gains and working off an overbought RSI. A symmetrical triangle suggests this could be a pause within a bigger uptrend with next potential resistance near 6.7300 and next potential support near 6.6550.
USDJPY has been bouncing around between 117.30 and 118.80. While it remains in an accelerating downtrend, an oversold RSI appears to have attracted some bargain hunters. Trading bounces could be contained near 119.00 resistance with next potential support at the August low near 116.20.
EURJPY’s latest rebound attempt failed at another lower high, this time near 129.20. Having slumped back toward 128.25, a retest of the recent low near 126.855 remains possible with RSI still pointing downward.
CADJPY has dropped back toward the bottom of an 82.90 to 84.40 trading range with next potential measured support near 81.40. That being said, RSI is getting really oversold so we could see a significant snap back rally at some point.
USDSGD has encountered some resistance near $1.4430 and could be due for a pause or correction with RSI getting overbought. It remains in an uptrend above $1.4265 support. Next potential upside resistance near the $1.4500 round number with initial support near $1.4420.