Friday was a funny day for technical analysis. It had appeared for much of the day that overbought conditions were catching up to world indices but then stocks staged a late day rally that too the UK NDAQ 100 to a new high. JPY continues to strengthen across the board, particularly against the struggling EUR and Pound. AUD and NZD finished the week on the back foot as well starting to give back earlier gains.
Asia Pacific indices
Australia 200 is still holding on to 5,800 retesting its breakout point as new support. Nex upside resistance tests near 5,840 then 5,600. A negative RSI divergence suggests upward momentum may be slowing. Next potential support in a pullback near 5,740 then 5,700.
Hong Kong 50 failed to hold above 24,000 dropping back toward 23,970 after encountering resistance near 24,150. RSI overbought and rolling over suggests a correction possible with next potential support near 23,760.
Japan 225 continues to roll over, falling from its 50-day average near 19,225 down toward 19,040 before bouncing back toward 19,190. With RSI slipping under 50 a retest of 19,000 or channel support near 18,840 remains possible
North American and European Indices
US 30 is still rolling over and with RSI overbought, looks vulnerable to a correction. The index finished last week near 20,600 but only because of a late surge up from 20,540. Next support possible near 20,500 with resistance in place near 20,620. RSI still above 70 but a failure there would signal a correction starting.
US SPX 500 is still drifting back from is recent high near 2,355 finishing near 2,350 after a late bounce up from 2,339. Next potential support near 2,322 then 2,300. RSI overbought and rolling over suggests upward momentum has peaked and a correction pending.
US NDAQ 100 spent most of Friday under 5,300 trading down toward 5,285 before a late pop back up toward 5,325 and another new all-time high. RSI is extremely overbought suggesting the index is vulnerable to a significant correction. Next support possible near 5,262.
UK 100 found support at a higher low near 7,255 and has bounced back above 7,300 but upside remains limited with both the index and the RSI having recently peaked at lower highs. Initial resistance near 7,320 then 7,365.
Germany 30 went on a roller coaster ride on Friday diving from 11,800 down toward 11,690 before staging a late rally back up toward 11,800. RSI falling toward 50 indicates upward momentum fading and a downturn pending.
Gold continues to climb toward the top of its $1,215 to $1,245 trading range, with support rising toward $1,234 from $1,230 with initial resistance near $1,240. Next potential resistance at a Fibonacci cluster between $1 250 and $1,255 on trend.
Crude Oil WTI is sitting on $53.00 trading between $52.80 and $53.25. More support in place at its 50-day average near $52.40 with next resistance near $53.85 the top of an ascending triangle.
US Dollar Index has stabilized in the 100.50 to 101.00 area consolidating Thursday’s break of an uptrend line and completion of an Evening Star candlestick pattern. Next potential downside support near 100.40 then 100.00.
EURUSD’s latest rebound has been contained by $1.0660 a Fibonacci with the pair retrenching back toward $1.0620. RSI failing to retake 50 indicates broader downtrend remains intact. Next potential support near $1.0600 then the 50-day average near $1.0585.
GBPUSD is sending mixed signals. The pair briefly dipped under its 50-day average near $1.2410 testing $1.2390 before bouncing back toward $1.2430. While this looks like a successful retest, RSI breaking under 50 suggests momentum turning downward.
NZDUSD has resumed its downswing, drifting back under $0.7200 toward $0.7180. RSI slipping under 50 suggests momentum turning downward. Next potential support near $0.7130 just above the 200 and 50-day averages.
AUDUSD is backsliding within a $0.7600 to $0.7725 trading falling from the top back toward $0.7660. a head and shoulders top forming in the RSI suggests upward momentum peaking and a downturn possible.
USDSGD is still bouncing around between $1.4155 and $1.4255 finishing the week near $1.4200. RSI under 50 and lower highs for the pair indicate continuing distribution. Next potential downside support near $1.4085.
USDJPY has resumed its downtrend in a big way. Resistance has dropped from 114.05 a Fibonacci level toward 113.20 with the pair trading near 112.80 and next support near 112.35 then 111.25. RSI failing to retake 50 and turning downward confirms downward pressure increasing again.
GBPJPY is retesting 140.00 round number and 200-day average support having been knocked down from 142.25 Fibonacci resistance. RSI under 50 suggests momentum turning downward with next potential support near 138.10 another Fibonacci level.
EURJPY continues to trend downward with resistance falling from 121.00 toward the 120.00 round number with next potential support near 119.05. RSI failing to retake 50 and turning lower indicates downward momentum increasing.
USDCAD tried to break through $1.3100 resistance but failed, keeping its downtrend and a big descending triangle intact. RSI still under 50 confirms downward momentum. Recently trading near $1.3075 potential support remains in the $1.2975 to $1.3000 zone.