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Chart Signals: Indices rally off higher lows, gold and oil fall back, Japan markets reverse course

Chart Signals: Indices rally off higher lows, gold and oil fall back, Japan markets reverse course

It appears the recent correction in major indices has run its course with overbought RSIs easing back toward neutral levels and holding near 50 with prices bouncing up off of higher lows. Gold and oil faltered near the $1,300 and $45.00 round numbers and have dropped back in what look like normal corrections. JPY pairs have stabilized and JPY has started to ease back which could take some of the pressure off Japan 225.

Asia Pacific Indices

Australia 200 has levelled off in the 5,230 to 5,260 range near the middle of a 5,160 to 5,300 trading channel. RSI suggests upward momentum slowing for now.

Japan 225 established support near 15,850 setting higher lows for both the index and the RSI and has rallied back up above 16,000 climbing on toward 16,140. Next resistance possible near 16,355 a previous high.

Hong Kong 50 finished last week with a breakdown under 21,000 on the index and 50 on the RSI but other indices have bounced back since then. Next support near 20,700 on bearish follow-through and resistance near 21,275 on a rebound.

India 50 fund some support at a higher low near 7,750 and has stabilized in the 7,780 to 7,830 range with next resistance near 7,845.  RSI holding 50 indicates underlying uptrend remains intact.

North American and European Indices

US 30 has bounced up off a higher low near 17,645 Friday, recently rallying up from near 17,780 toward 17,880 with next potential resistance near the 18,000 round number. RSI holding 50 indicates underlying uptrend intact.

US NDAQ 100 has bounced back above 4,345 a Fibonacci level from 4,310 support and advanced on 4,370 with next resistance near 4,400 where the 50 and 200-day averages cluster.

US SPX 500 is back up above 2,060 suggesting Friday’s dip below that level may have been a shakeout of weaker hands. Index has rallied up toward 2,078 with next resistance possible near 2,082 then 2,100.

UK 100 is closed for a bank holiday today.

Germany 30 successfully retested support at the 10,000 round number and has started to rebound, climbing back up in to the 10,100 to 10,150 area with next resistance near 10,260. A higher low for the index and RSI stabilizing near 50 suggest recent correction may be ending.


Gold has been slammed back toward $1,288 after briefly peeing above $1,300 a round number and Fibonacci level indicating continued resistance at that level. Initial support in place near $1,284.

Crude Oil WTI failed to hold above $45.00 and has been knocked back down into the $43.70 o $44.10 range in a normal trading correction trying to unwind an overbought RSI. Next support possible near $41.45. A golden cross of the 50 and 200-day averages pending.


US Dollar Index is breaking down again, taking out 93.00 and falling toward 92.60 with next potential support near a measured 92.00.

EURUSD is breaking out today, blasting through a $1.1500-$1.1510 resistance zone and carrying on toward $1.1525 with next potential resistance at the August high near $1.1625. RSI confirms upward momentum increasing but approaching overbought levels.

NZDUSD continues to advance in a rising channel of higher highs and lows confirmed by RSI holding above 50. Currently trading near $0.7000 between $0.6990 and 40.70125 with next resistance possible near $0.7055.

AUDUSD remains in an uptrend above its 50-day average above $0.7530 with more support at the $0.7500 round number. The pair has recently rallied from near $0.7610 toward $0.7660 with more resistance in place near $0.7755. RSI holding 50 confirms underlying uptrend intact.

USDCNH is sitting on 6.4850 in a 6.4565 to 6.5285 sideways trading range confirmed by RSI sitting on 50.

USDSGD continues to stabilize near $1.3420 in a $1.3390 to $1.3540 trading range. Higher lows in the RSI indicate downward pressure easing.

USDJPY has stabilized in the 106.40 to 106.80 range having found support near 106.00 with more possible near the 105.00 round number. A positive RSI divergence suggests downward pressure may have peaked for now.

EURJPY held 121.70, completing a double bottom and has rebounded toward 123.00 with next potential rebound resistance near 124.50.

CADJPY held 84.55 Fibonacci support and has bounced up toward 85.00 with next potential resistance near 86.20 a Fibonacci level.

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