Capital is clearly flowing back into defensive havens with JPY breaking out against USD and EUR while gold continues to build on yesterday’s rally. Major indices, meanwhile, continue to show signs of breaking down and coming under distribution.
Asia Pacific Indices
Australia 200 is breaking down today, following yesterday’s break of its 50-day average by falling below 5,700 and on toward 5,680. RSI breaking under 70- and falling confirms momentum turning downward. Next potential support near 5,665 then 5,575.
Japan 225 is breaking down today with an uptrend support line near 19,100 and then the 19,000 round number failing. Falling RSI confirms downward pressure increasing. Next potential support near 19,785 the bottom of a sideways range.
Hong Kong 50 dipped down toward 24,200 then bounced back 24,460 as it starts to consolidate its big breakout over 24,000 and rally up toward 24,650. A negative RSI divergence indicates upward momentum may be slowing.
North American and European Indices
US 30 continues to fall, confirming Tuesday’s break under 20,785 by falling into the 20,610 to 20,650 area. RSI under 50 confirms momentum turning downward. Next potential support at the 50-day average near 20,415.
US SPX 500 remains in retreat with Tuesday’s low near 2,345 becoming resistance and the index falling toward 2,340 with next potential support at the 50-day average near 2,329 then a 23% Fibonacci retracement near 2,313. RSI under 50 confirms increasing downward momentum.
US NDAQ 100 staged a major breakdown Tuesday, taking out 5,395 and diving into the 5,340 to 5,370 area. RSI is testing 50 where a break would confirm the downturn. Next potential support near 5,300 then the 50-day average near 5,244.
UK 100 appears to be on the verge of a breakdown, testing 7,300 uptrend line and round number support. The RSI has already broken 50 to signal a downturn. Resistance drops toward 7,325 with next support possible in the 7,250 to 7,275 area near the 50-day average.
Germany 30 continues to decline after completing a bearish rising wedge earlier this week. Confirming a break under 12,000 the index has dropped into the 11,860 to 11,910 area with next potential support near 11,795 then 50-day average. RSI falling under 50 signals momentum turning downward.
Gold is building on yesterday’s big rally up off of $1,230 with support climbing toward $1,246 and the metal price advancing on $1.250. RSI above 50 and climbing indicates upward momentum increasing. . Next potential resistance near $1,254 then $1,260 and the 200-day average.
Crude Oil WTI appears to be putting in a near-term bottom, dipping under $47.00, holding $46.40 uptrend support and then rebounding toward $47.50 to complete a bear trap and a hammer candle. Oversold RSI suggests potential for a rebound with next potential resistance at the 200-day average near $48.30.
US Dollar Index is digesting Tuesday’s big breakdown under 100.00 trading near the bottom of its big bearish candle in the 99.25 to 99.75 area with next potential support near 98.60 the 200-day average.
EURUSD has slipped back from channel resistance at a Fibonacci cluster near $1.0830 where its recent rally has been contained. The pair is trading near $1.0800 while support rises toward $1.0770 from $1.0720. Rising RSI indicates upward momentum accelerating.
GBPUSD has encountered resistance at the $1.2500 round number and has dropped back toward $1.2480 in what looks like a normal trading correction. Initial support in place $1.2420 then at the 50-day average near $1.2400.
NZDUSD continues its upswing, holding above $0.7000 trading between $0.7020 and $0.7070. RSI peeking above 50 signals momentum turning back upward. Next potential resistance near $0.7090 then a moving average cluster near $0.7145.
AUDUSD is still dropping back from $0.7725 resistance but has bounced off of $0.7635 support toward $0.7680. RSI rolling over suggests recent upward momentum running out of gas.
USDSGD remains in a downtrend and under $1.4000 with resistance falling toward $1.3980. The pair is holding above $1.3950 Fibonacci support for now with its next downside test near $1.3900 its 200-day moving average.
USDJPY is breaking down today, taking out 111.60 channel support than 111.25 a Fibonacci level on its way toward 110.80 with next potential support near the 110.00 round number then a Fibonacci cluster near 109.00. RSI under 50 and falling indicates increasing downward pressure.
GBPJPY successfully tested the 200-day average bottom of its falling channel near 137.50 and has bounced back up through 138.10 and on toward 138.70 but it remains in a downtrend below resistance near 139.55 then 140.00. RSI under 50 and falling indicates continuing distribution.
EURJPY is tumbling again today diving down from 121.00 and its 50-day average through the 120.00 round number and on toward 119.70. RSI breaking under 50 confirms momentum turning downward. Next potential support near 119.05 a Fibonacci level.
USDCAD is turning back downward from a lower high after an attempt to clear $1.3400 failed to hold. The pair has dropped back toward $1.3330 with next potential support in the $1.2280 to $1.3300 area. RSI testing 50 where a breakdown would signal a downturn in momentum.