Here are today’s chart signals covering index, forex and commodity markets.
Index Chart Signals
Australia 200. Friday’s candle made both a lower low and higher high and the index remains indecisive in the short term. Momentum is low with the 14 day RSI tracking broadly sideways just above 50. The 38.2% Fibonacci retracement and 20 day moving average provide support around 5166. A break below this could see a deeper downward correction. Friday’s high now provides initial resistance at 5269
US SPX 500 continues to flat line around the 78.6% Fibonacci retracement of the early November decline. A move below near term support around 2077 could see the 14 day RSI breaking support and rolling over below 50 in a short term bearish development. Thursday’s high at 2101 represents near term resistance while the 2117 high represents the key level on the upside.
Germany 30 put in an inside day on Friday, trading within the previous day’s range. However, the uptrend remains intact leading into Thursday’s ECB meeting. The latest minor correction pulled back neatly to the 20 day moving average which is starting to do a good job defining the uptrend. It currently provides potential support around 11084. Previous peaks and the 78.6% Fibonacci resistance represent potential resistance between 11670-11805.
Commodity Chart Signals
Gold broke below the recent lows with a large red candle on Friday suggesting potential for ongoing downward momentum. The March 2008 peak and more recent minor lows represent possible support around $1030-$1045. Previous lows around $1066 now represent resistance
Crude Oil WTI. The daily trend is again down with candles making lower highs and lower lows. The previous low at $39.24 represents support. However, a basing pattern in the form of a rounding saucer a possibility. New trend lows around the $40 area would begin to make this saucer pattern more likely.
FX Chart Signals
EURUSD remains inside last Wednesday’s range as the market counts down to Thursday’s ECB decision. A falling wedge remains a possibility here. This is a “termination” pattern so a break above wedge resistance would be a potentially bullish development. Head Fakes or false breaks below wedge support are also not unusual with these patterns and something to be on the alert for in what could become a volatile week.
EURUSD CFD Daily
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AUDUSD is trending down on the daily chart. There is possible horizontal support around .7160. However downward momentum is quite strong at the moment with the 14 period slow stochastic starting to roll over from the over bought zone. Lower retracement levels from 50% to 78.6% are set out on the chart below. The old trend channel resistance might also prove to be a support level.
AUDUSD CFD Daily