Capital continues to leave the US for perceived havens. Flows that started into Europe continued at a more moderate pace as traders shifted their sights to gold and JPY pairs that saw the latter post big gains against USD, EUR and GBP. Meanwhile, with capital leaving risk markets US indices are breaking down, taking out support levels and moving averages.
Asia Pacific Indices
Australia 200 is breaking down today, taking out its 50-day average then 5,800 and diving toward 5,730 with next potential support near 5,690 then 5,600 its 200-day average. Plunging RSI confirms downward pressure increasing.
Japan 225 is breaking down in a big way today. Already in retreat form 20,000, the index broke 19,695 causing a recent breakout to fail and then dove down toward 19,470. Next potential support at the 50-day average near 19,215. Falling RSI indicates a downturn confirmation pending.
Hong Kong 50 has started to retreat, falling back under 25,255 toward 25,180. Next potential support in a downturn near 25,000 then 24,890. RSI falling back under 70 from overbought signals a trading correction starting.
North American and European Indices
US 30 has been falling away from 21,000 and broke down in a big way today, diving from near 20,925 down through its 50-day average 20,795 toward a test of 20,640. RSI breaking under 50 confirms a downturn in momentum underway. Next potential support near 20,440.
US SPX 500 got hammered Wednesday, falling from 2,400 double top resistance toward 2,365 where it has been testing its 50-day average. RSI breaking under 50 confirms momentum turning sharply downward. Next potential support near 2,350 then 2,325.
US NDAQ 100 has turned decisively downward, failing to hold above 5,700 and sliding toward 5,600 completing a 23% retracement of its recent rally and more. Next potential support appears near 5,580 then 5,540. RSI breaking under 70 from overbought confirms a significant correction underway.
UK 100 ran into resistance near 7,530 and has dropped back under 7,500 toward 7,470 but so far is holding 7,450 its recent breakout point. Next support on a failure possible near 7,385 then the 50-day average near 7,320.
Germany 30 is starting to really break down. Having completed a double top near 12,895, the index has been teetering but today, it broke 12,725 and then the dam burst sending the index down toward 12,570. Next support near 12,500 then 12,395. Tumbling RSI indicates momentum turning downward.
Commodities
Gold is in rally mode clearing $1,236 to complete a rounded bottom then soaring up through $1.250 and on toward $1.260 before settling back toward $1,258. RSI regaining 50 signals momentum turning upward with next potential resistance near $1,270 then $1,284. A golden cross of the 50 and 200-day averages is pending which if successful would confirm an uptrend underway.
WTI crude oil has paused to consolidate its recent rebound rally trading between $48.00 and $49.30 recently trading just below $49.00 where its 50 and 200-day averages converge. . The price is holding above $47.70 Fibonacci support while RSI regaining 50 confirms momentum turning upward with next resistance near $50.00.
FX
US Dollar Index remains under pressure, breaking down under 98.00 to confirm a downleg that started when it took out 98.40 and dropping toward 97.40. RSI under 50 and falling confirms increasing downward pressure. Next support possible at a previous low near 96.90.
EURUSD continues to climb with support moving up from its $1.1000 breakout point toward $1.1130 and the pair advancing on $1.1155. Next resistance appears near $1.1210. RSI confirms increasing upward momentum but is approaching overbought territory.
GBPUSD is attracting renewed interest, rallying up from $1.2910 toward $1.2960 with a retest of the $1.3000 level looming. Next potential resistance on a breakout near $1.3155 a 38% retracement of the previous downtrend. A recent golden cross of the 50-day average over the 200-day confirms an uptrend underway.
NZDUSD appears to be on the rebound, rallying up from $0.6880 toward $0.6940 but so far the gains have been contained by the 50-day average near $0.6965 with more resistance possible near $0.6970. RSI testing 50 where a breakout would signal an upturn.
AUDUSD is still bouncing around between $0.7390 and $0.7445 two Fibonacci levels. RSI is sloppy near 40 suggesting downward pressure easing but no sign of an upturn either. Next resistance near $0.7465 then $0.7500 with next support near $0.7330.
USDSGD remains under pressure with resistance falling toward $1.3950 from $1.4000 and the pair dropping toward $1.3900 with next potential support near $1.3860. A death cross of the 50-day average under the 200-day would confirm a new downleg underway.
USDJPY has a decisive downturn underway plunging from 113.00 toward 111.00 taking out a Fibonacci level near 1.1215 along the way. RSI breaking under 50 confirms momentum turning downward. Next potential support near 110.65 then 110.00
GBPJPY is breaking down today. The bottom fell out after 145.70 support was breached with the pair diving down through 145.00 and on toward 143.80. RSI testing 50 where a break would confirm a downturn in momentum. Next potential support near 143.30 then 141.85 both Fibonacci levels.
EURJPY is turning downward today and appears to be completing an Evening Star bearish candle formation. 125.00 support failed and the pair has plunged toward 123.75 with next potential support near 123.00. RSI falling under 70 confirms a correction has started.
USDCAD has paused between $1 3600 and $1.3640 holding above $1.3570 Fibonacci support. RSI holding 50 suggests recent trading could be a correction within a larger uptrend. Initial resistance near $1.3660 then $1.3700 on a bounce.
