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Chart Signals: Indices under accumulation, JPY remains soft while AUD and NZD rally

Chart Signals: Indices under accumulation, JPY remains soft while AUD and NZD rally

Indices have shrugged off initial weakness and resumed their advances over the last few hours as RSI momentum turns increasingly upward. AUD and NZD have also been climbing ahead of today’s RBA meeting while JPY remains under pressure reacting to a more dovish Bank of Japan.

Asia Pacific Indices

Australia 200 continues to climb with the index holding 5,000 and the RSI holding 50 following breakouts to indicate ongoing accumulation. The index has cleared 5,045 Fibonacci resistance with its next upside test possible near 5,145 on trend.

Japan 225 had been having an inside day consolidating recent gains between 17,600 and 17,800 but has broken out to the upside again, signalling the start of another upleg that could challenge 18,000 round number or 18,210 Fibonacci resistance. RSI above 50 confirms momentum turning upward.

Hong Kong 50 is bouncing around 19,485 a Fibonacci level, trading between 19,325 and 19,575. RSI nearing 50 which it needs to clear to confirm an upturn with a run at the 20,000 round number possible on a breakout with initial measured resistance near 19,825.

India 50 ran into resistance near 7,580 but has been holding above the 7,500 to 7,515 area which has emerged as new higher support. RSI testing 50 where a breakout would signal momentum turning upward. Next resistance possible near 7,750 on a breakout.


North American and European Indices

US 30 is breaking out today, clearing 15,475 Fibonacci resistance and the 16,500 to signal the start of a new upleg with next potential resistance near 16,630 then 16,730. RSI testing 50 where a breakout would confirm an upturn in momentum. Support rises toward 16,430 from 16.350.

US NDAQ 100 has resumed its uptrend, rallying up off a higher low near 4,255 and driving toward a test of 4,310 a Fibonacci level with next resistance after that near 4,375.

US SPX 500 has broken through 1,940 a Fibonacci level, to signal the start of a new upleg with next potential resistance near 1,955 then 1,975 on trend. RSI above 50 and trending higher confirms upward momentum increasing.

Germany 30 is bouncing around between 9,640 and 9,850 around 9,780 a 23% retracement of the downtrend that started in November. The index has been advancing the last few hours with support rising toward 9,720.  A symmetrical triangle of lower highs and higher lows indicates ongoing consolidation between 9,560 and 9,925.

UK 100  has run into resistance near 6,125 and dropped back down through 6,085 a Fibonacci level on its way toward a retest of support at the 6,000 round number, a recent breakout point. This test was successful and in the last few hours accumulation has resumed with the index advancing on 6,085 once again.


Gold is testing the top of its $1,110 to $1,128 trading channel and its 200-day average. A step pattern of pauses at higher levels following rallies indicates accumulation while RSI above 50 and still rising indicates upward momentum still accelerating. Next resistance on a breakout possible in the $1,150 to $1,155 area where a measured move, round number and Fibonacci test cluster.

Crude Oil WTI failed to hold above $32.50 and has turned decidedly lower falling into the $30.60 to $30.80 area with next potential support in the $29.70 to $30.00 area. RSI bouncing around 50 indicates momentum shifting into neutral. Initial bounce resistance near $31.10.


US Dollar Index failed to retake 100.00 again and has dropped back toward 99.00 with its 98.20 to 99.60 trading channel still intact for the moment.

EURUSD is bouncing up off a successful retest of the bottom of its $1.0800 to $1.1000 trading channel, climbing up toward $1.0910 from $1.0840 with next resistance near $1.0970.

NZDUSD is picking up again, regaining $0.6500 and driving on toward $0.6550. RSI testing 50 where a breakout would confirm an upturn in momentum with next resistance near $0.6600 then the 50-day average near $0.6630.

AUDUSD continues to attract support above $0.7000 advancing from near $0.7065 toward $0.7120 with next potential resistance near $0.7140 the 50-daty average then $0.7180 the extension of an old broken trend line. RSI above 50 indicates upward momentum accelerating.

USDCNH is holding steady between 6.6090, a 23% retracement of its previous uptrend, and 6.6160 with next resistance near 6.62380.

USDJPY has levelled off near 121.00 trading in the 120.70 to 121.40 area as it starts to consolidate Friday’s big breakout rally. Additional support possible near 120.00 with next resistance near 122.40 a former support level.

EURJPY continues to rally up off of 130.00 for a second straight day with support moving up toward 131.70 and the pair advancing on toward 132.00 with next potential resistance in the 132.40 to 132.60 area. Rising RSI indicates upward momentum still accelerating.

CADJPY successfully tested 86.20 a 50% retracement of the previous downtrend as new support and has started to drive higher again, rallying to test its 50-day average near 87.00 with next Fibonacci resistance near 87.90. RSI confirms upward momentum increasing.

USDSGD remains under distribution, with resistance falling toward $1.4250 and support near $1.4200 with its next test after that near $1.4110. RSI breaking under 50 signals momentum turning downward.

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