Here is today’s wrap and chart signals
Index Chart Signals
US 30: Continues to oscillate around its 200 day moving average which is currently at 17,725. The short term trend is up. There is a zone of resistance from the 2 July high at 17819 to the top of the price gap at 17,880. Last Monday’s low at 17450 provides potential support. RSI needs to retake 50 to signal a more convincing upturn.
Germany 30: Gapped higher on Friday and is approaching the well-established trend channel resistance line at around 11,400. The RSI has moved above 50 in a potentially positive move. A clear break above the resistance line would be a potentially bullish development. While another failure at the resistance line and a quick move to fill the gap down to Thursday’ s high at 11,033 would be a sign of weakness indicating the down sloping trend channel remains intact.
Australia 200: Remains in a volatile range between 5382 and 5611. Both the 200 day moving average and 14 day RSI are tracking broadly sideways indicating range trading behaviour. Near term support on the hourly chart is between 5491 and 5483. Resistance is between the 200 day moving average at 5591 and the 2 July peal at 5610
Forex Chart Signals
AUDUSD: The short term trend is up but at this stage momentum is low. From here a move above Thursday’s high at .7492 would see t the uptrend remain intact. Given that the RSI is in the oversold zone, this could see a rally to test the 50% or 61.8% retracement levels at .7556 or .7599. However, a move below Friday’s low at .7409 would end the short term uptrend on the daily chart with potential to test the recent low at .7370.
EURUSD: The short term trend on the daily chart has been up since last Tuesday with each day’s candle making higher lows and higher highs. However, price failed to move convincingly above the 50 day moving average at 1.1175 on Friday. The 14 period RSI has also not yet been able to move above 50% to demonstrate real strenght. From here a move below Friday’s low of 1.1030 would see the downtrend resume with a test of 1.0916 in prospect. On the other hand potential resistance is provided by the 61.8% Fibonacci retracement at 1.1238 and the 78.6% retracement at 1.13255.
Commodity Chart Signals
Crude Oil WTI: The move below Friday’s low this morning sees the downtrend resume. The 78.6% Fibonacci retracement level around $51.16 provides possible support. A move below that could see a test of the $50.46.
Gold: Remains in a short term uptrend. Recent peaks on the hourly chart at 1165.58 and 1167.93 provide potential resistance. A move below the recent low at 1158.38 on the other hand, would be a sign of weakness creating potential for a pullback to the 61.8% Fibonacci retracement at 1155.18 or the 78.6% retracement at 1151.17