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Chart Signals: Major breakouts with RSI Confirmation for currencies and commodities

Chart Signals: Major breakouts with RSI Confirmation for currencies and commodities

The big downturn in USD today has ignited across the board rallies in major currencies, gold and oil, completing bases and signalling new uptrends. Many of these rallies have been confirmed by RSI crossings or retests of the 50 line. Indices, however, have continued to struggle although US indices did pick up later in their session, led by the mining and energy sectors.

Asia Pacific Indices

Australia 200 has a reversal underway having fallen down below 4,900 toward a higher low near 4,830 before gaining it all back to create a bullish hammer candle. Next resistance on a rebound appears near 5,000.

Japan 225 has bounced up off of 16,880 but is struggling in a retest of 17,000 as new resistance which it needs to overcome to signal an upturn. RSI falling away from 50 however suggests momentum turning downward again.

Hong Kong 50 fell back under 19,000 and remainw under pressure with a potential retest of 18,600 looming. A rising trend in the RSI, however, suggests that could hold and potential create a double bottom.

India 50 has resumed its downtrend after RSI failed to breakout over 50 and the index peaked at a lower high near 7,515. Falling from 7,400 toward 7,340 in continued distribution next potential support appears near 7,240.

North American and European Indices

US 30 successfully retested support in the 16,000 to 16,030 range then started to advance again, finishing the day near its highs in the 16,300 to 16,400 area., with next resistance possible near 16,475 a 38% Fibonacci retracement and near the recent high.  RSI still advancing on 50 indicates confirmation of an upturn pending.

US NDAQ 100 established support at a higher low near 4,160 and has bounced back up toward 4,195 a Fibonacci level with next potential resistance near 4,220 then 4,280 on a rebound. RSI climbing toward 50 indicates downward pressure easing. A hammer candle indicates base building still underway with bears unable to push the market lower.

US SPX 500 fell below 1,900 only briefly before bouncing up toward 1,915, a bear trap rebound which along with RSI still trending upward toward 50 indicates increasing underlying interest. Upside resistance in place near 1,940 a Fibonacci level.

Germany 30 has bounced up from 9,390 toward 9,560, carving out a higher low. Initial resistance on a bounce possible near 9,650 then 9,780.

UK 100 has successfully retested 5,855 support to keep its emerging uptrend intact and has bounced back toward 5,910 with next potential resistance near 5,920 then 6,000


Gold is breaking out again today, clearing $1,132 and advancing into the $1,137 to 1,145 zone with next potential resistance at $1,155 a Fibonacci level. RSI confirms advance but nearing overbought territory suggesting potential for a pause at some point.

Crude Oil WTI dip down to $28.70 didn’t last very long with the price rallying back up through $30.00 and driving on toward another test of $32.00 with next resistance at the recent high near $33.90. a higher correction low following a rounded bottom indicates a cup with handle base forming. RSI regaining 50 indicates recovery momentum continues to grow.


US Dollar Index plunged down from 99.00 toward 97.00 in a major trend break before levelling off for now near 97.25. RSI diving under 50 confirms a sharp downturn in momentum. Next potential support near a measured 96.00

EURUSD is breaking out today, driving through the top of its $1.0800 to $1.1000 consolidation range through its 200-day average near $1.1060 which may become support and on toward $1.1111 a round number and Fibonacci test. Next potential resistance near $1.1145. RSI climbing up off 50 confirms big upturn in momentum.

GBPUSD is breaking out today, clearing a Fibonacci cluster near $1.4515 that may become support and taking a run at its next retracement test near $1.4655 before settling back toward the $1.4590 to $1.4610 area to rest.

NZDUSD has made a decisive breakout from a base, blasting through $0.6560 through its 50-day average near $0.6645 and on toward $0.6700 before settling near $0.6670. RSI clearing 50 confirms the upturn in momentum. Next potential resistance near $0.6765 then $0.6800.

AUDUSD is coming off a bullish engulfing day that saw it successfully retest $0.7000 and 50 on the RSI to confirm the current uptrend then rally up through $0.7130, clear its 50-day average and drive toward $0.7180 with next potential resistance near $0.7215 and $0.7300.

USDCNH broke out of an ascending triangle through 6.6n too a sharp U turn south to retest round number and trend support near 6.6000 with next support near 6.5875 and initial resistance near 6.6090 a Fibonacci level.

USDJPY has broken down big time, taking out the 120.00 round number and diving toward 117.00 before bouncing back toward 118.00. RSI breaking under 50 confirms momentum turning downward. Next potential support near 116.55 with next bounce resistance near 118.40.

EURJPY has had a choppy day, initially falling to test 130.00 which held and then bouncing back up through its 50-day average near 130.60 but then struggling with resistance at its prior low near 131.00. RSI suggests upward momentum levelling off for now.

CADJPY started the day in correction mode, falling to test 84.550 then bouncing to test 86.20  the 38% and 50% Fibonacci retracements of its previous downtrend to finish in the middle near 85.50. RSI holding 50 confirms suggests this as a correction within an uptrend.

USDSGD is breaking down today, taking out $1.4200 and its 50-day average to signal a new downleg with the downturn confirmed by RSI falling under 50. Next potential support appears near the $1.40000 round number then the 200-day average near $1.3890.

USDCAD has fallen down through $1.400 and plunged toward $1.3750 to kick off a new downleg in a big way. RSI falling away from 50 following a retest confirms downward momentum accelerating. Resistance falls toward the 50-day average near $1.3885 with next support near $1.3630 a Fibonacci level.

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