It increasingly looks like the seasonal and election honeymoon rally in world markets is nearing. Double tops are forming in Australia 200, Hong Kong 50, US 30 and US SPX 500 with a head and shoulders top complete in the UK 100. GBP continues to strengthen, breaking out against USD and JPY, while AUD and NZD remain stuck below $0.7500 and $0.7000 respectively.
Asia Pacific indices
Australia 200 appears to be forming a double top below 5,950 with more resistance possible near 6,000. RSI levelling off at a lower high indicates upward momentum slowing. Initial support in a pullback possible near 5,900 then 5,855 and 5,810 the 50-day average.
Hong Kong 50 appears to be forming a double top with resistance confirmed near 24,765. The index has dropped back toward 24,640 with next support near 24,500 then 24,000. RSI flattening out indicates upward momentum slowing.
Japan 225 looks like its recent rally has run out of gas RSI indicates upward momentum levelling off and the index is struggling with 19,325 ressistance again. Initial support in a downturn possible near 19,155 then the 50-day average near 19,065 and the 19,000 round number.
North American and European Indices
US 30 appears to have completed a double top near 21,130 with the index drifting back under 21,000 and on toward 20,950. RSI indicates upward momentum stalling and a downtrend potentially emerging. Next support possible near 20,930, 20,800, and the 50-day average near 20,760.
US SPX 500 is still stuck below 2,400 resistance and appears to have completed a double top. The pair has dropped back toward 2,385 with next support near 2,370 then the 50-day average near 2,364. RSI indicates upward momentum slowing and a correction possible.
US NDAQ 100 has encountered measured resistance near 5,600 with a pop up from 5,560 stalling out near 5,590. An overbought RSI suggests potential for a pause or correction. Initial pullback support possible near 5,535 then the 5,480-5,500 area.
UK 100 has resumed its downtrend with a head and shoulders top back on as resistance falls toward the 7,260 neckline and the index drops toward 7,190 with next potential support near 7,100.then 7,000. RSI falling away from 50 confirms increasing downward momentum.
Germany 30 still appears to be forming a top with a descending triangle forming between 12,520 resistance and 12,380 breakout point support with the index trading recently near 12,435. RSI rolling over and a negative RSI divergence indicate upward momentum weakening.
Gold is still bouncing around between $1,260 and $1,270. RSI holding above 50 and the price holding above its 50 and 200-day averages in the $1,200 to $1,255 zone with a golden cross pending indicates a pause following a correction within a larger uptrend. Next resistance possible near $1,280.
Crude Oil WTI appears to be turning back upward, following a hammer candle and bullish bear trap reversal up off of $48.00 consolidating between $48.80 and $49.40. RSI confirms downward pressure starting to ease. Next resistance near $50.00 then the 50-day average near $50.70.
US Dollar Index is still bouncing around between 98.60 and 99.20. With rebounds being contained by the bottom of a breakaway gap and RSI under 50 and trending lower this looks like a pause within an ongoing downtrend. Next potential support near a measured 98.00.
EURUSD has been trading near $1.0900 as it continues to struggle with the top end of a 1.0850 to $1.0950 trading range. RSI near overbought and levelling off suggests advance may be getting technically tired. Next upside resistance at the $1.1000 round number with next support at the 200-day average near $1.0830.
GBPUSD broke out Friday, clearing its previous intraday high near $1.2900 to signal the start of a new upleg on trend. The pair has advanced on $1.2950 with next potential resistance at the $1.3000 round number. RSI overbought but confirms upward momentum still increasing.
NZDUSD is still trending downward having confirmed last week’s breakdown under $0.7000 trading near $0.6970. RSI under 50 and falling indicates downward momentum increasing. Next potential support near $0.6820 then $0.6700 based on measured moves.
AUDUSD found some support near $0.7445 and is trying to rebound but has been contained by the $0.7500 round number, indicating its downtrend remains intact. RSI steady under 50 confirms downward momentum. Next downside support near $0.7390 a Fibonacci level.
USDSGD is still trending sideways between $1.3900 and $1.4000 sitting on its 200-day average near $1.3965 with initial support near $1.3948 a Fibonacci level. RSI steady just below 50 suggests a pause within a downtrend.
USDJPY continues to rally up out of a rounded bottom that could become a head and shoulders base. Support has moved up toward 111.00 from 110.65 with the pair advancing on 111.50. Next potential resistance near 111.85 the 50-day average then 112.15.
GBPJPY remains under accumulation, rallying up from 143.75 into the 144.20 to 144.50 area with next potential resistance near the 145.00 and 147.50 round numbers. RSI confirms increasing upward momentum but is getting overbought suggesting potential for a pause or correction.
EURJPY’s latest rally has run out of steam near 122.00 short of 123.00 channel resistance. The par has slipped back toward 121.40 with next potential support near 120.80 then 120.00. RSI suggests upward momentum levelling off.
USDCAD continues to climb, clearing $1.3600 with support rising toward $1.3630 RSI overbought but confirms rising upward momentum. Next potential resistance near $1.3830 a Fibonacci test.