Today could be a tipping point for world markets. A number of reversal patterns have emerged in indices and currencies. A number of bearish key reversals have emerged today where a market broke out to a new high early then reversed sharply downward indicating a buying climax. Markets in key reversals include EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD, US NDAQ 100 and US SPX 500. Also, the Germany 30 appears to have completed a head and shoulders top.
Asia Pacific Indices
Australia 200 ran into resistance near 5,800 and has dropped back toward 5,765, keeping a sideways trading channel between 5,650 and 5,800 intact. RSI bouncing around 50 confirms a sideways trend. Initial support possible at the 50-day average near 5,730.
Japan 225 is clinging to 20,000 round number and 50-day average support after dropping back from 20,150. Initial downside support possible near 19,970. RSI sitting on 50 indicates sideways momentum as the index continues to swing up and down in a channel between 19,800 and 20,300.
Hong Kong 50 is still trending upward, breaking out over 27,000 and advancing into the 27,120 to 27,150 area. RSI is getting overbought so a correction looks possible at some point.
North American and European Indices
US 30 is breaking out to a new high today, clearing 21,700 but it has encountered some resistance near 21,750 while the RSI still needs to break out of a downtrend to confirm . Next measured resistance possible near 21,900 with next support near 21,625.
US SPX 500 peeked above 2,480 to a new all-time high but wasn’t able to get much farther, peaking near 2,483 before tumbling back toward the 2,460 to 2,470 area. The RSI indicator rolling back under 70 form overbought territory signals upward momentum has peaked and a correction starting. Next support on a breakdown under 2,460 possible near 2,450.
US NDAQ 100 appears to have peaked with a bearish key reversal day underway. The index broke out over 5,950, shot up to test 6,000 then plunged down toward 5,840 before recovering back toward 5,900. RSI broke under 70 to confirm upward momentum fading and a correction starting.
UK 100 continues to trend sideways between 7,300 and 7,600 with the index sitting just below the middle of this range and the RSI sitting on 50 confirming neutral momentum. Initial resistance near 7,460 with initial support near 7,400.
Germany 30 is breaking down today, taking out 12,225 a Fibonacci level to complete a head and shoulders top. Next potential support near 12,140 then 12,090. Falling RSI confirms increasing downward momentum.
Commodities
Gold continues to swing back upward with the price regaining $1,260 and advancing on $1,264 with next potential resistance near $1,270 then $1,280 Rising RSI confirms increasing upward momentum.
WTI crude oil continues to climb, holding above $48.25 a Fibonacci level and advancing into the $48.80 to $49.10 area near its 200-day average. Next potential resistance between $49.75 and $50.00 a Fibonacci test and a round number.
Copper continues to climb, building on its recent breakout over $2.82 by advancing on $2.88 as support rises toward $2.85. Next potential resistance near $2.94 a Fibonacci level than the $3.00 round number. RSI extremely overbought but still confirming upward momentum for now. It may not take much to spark a correction.
FX
US Dollar Index has established support near 93.00 and rebounded toward 93.65. A hammer candle suggests weak hands have been shaken out and bargain hunters may be appearing. An oversold RSI indicates selloff overdone and a bounce possible with initial resistance near 94.00.
EURUSD has dropped back under $1.1700 after spiking up toward $1.1775 overnight in what looks like a bearish key reversal day. With RSI overbought, the recent uptrend may be near exhaustion and a correction possible with initial support in place near $1.1680 then $1.1620.
GBPUSD failed to break through Fibonacci resistance at $1.3155 and has dropped back toward $1.3075 in what looks like a normal trading correction so far with support coming in near $1.3050. It remains in an uptrend above $1 3000 with its 50-day average near $1.2900.
NZDUSD has dropped back under $0.7500 after spiking up toward $0.7555 in what looks like a bearish reversal, buying climax and false breakout. With RSI overbought, a correction looks possible with initial support near $0.7480 then $0.7450 and $0.7400.
AUDUSD spiked up above $0.8000 briefly but failed to hold above that level, dropping from a high near $0.8065 back toward $0.7970. An overbought RSI and a head and shoulders top forming indicates upward momentum peaking and following this bearish reversal, a correction looks possible with initial support near $0.7900.
USDSGD is on the rebound trading back up toward $1.3590 after finding support near $1.3540 with more possible near $1.3500. An oversold RSI indicates the recent drop may have been overdone and a rebound possible with initial resistance near $1.3610 then $1.3640.
USDJPY continues to bounce up and down within a 110.60 to 112.15 range between two Fibonacci levels. RSI holding below 50 indicates a continuing downtrend. The pair has dropped back toward 111.00 after running into resistance at the 50-day average near 111.65 and may be resuming a downtrend.
GBPJPY is retesting 145.00 round number support after getting knocked down from a lower high near 146.50. RSI testing 50 with a sideways trend emerging, perhaps between the 50-day average near 144.00 and 146.50.
EURJPY is sending mixed signals as it sits on 130.00. An ascending triangle continues to form between 128.50 and 131.00 indicating accumulation while RSI continues to fall toward 50 indicating slowing upward momentum and the potential for a downturn.
USDCAD found support near $1.2420 and has started to bounce back in a normal upward correction. The pair has regained $1.2500 advancing on $1.2550 as a deeply oversold RSI suggests potential for a bigger bounce. Next resistance possible near $1.2565 then $1.2610.
