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Chart signals: new highs for some US indices, gold breaks down as USD rallies

Indices are back in the saddle today with the US 30 and US SPX 500 rallying to new highs, the Japan 225 regaining 20,000 and Hong Kong 50 testing 26,000. A rebound by USD has gold, JPY, EUR, GBP, AUD and NZD in retreat to varying degrees. 

Asia Pacific indices

Australia 200 has bounced up toward 5,800 from a higher low and Fibonacci level near 5,742. RSI back above 50 also looks encouraging but it needs to retake its 50-day average and resistance between 5,820 and 5,835 to call off a head and shoulders top. 

Japan 225 has regained 20,000 advancing on 20,160 with resistance in place near 20,240 where a retest could end in a breakout or a double top. Next resistance possible near a measured 20,480 if successful. RSI holding 50 and rising confirms accumulation and indicates upward momentum accelerating. 

Hong Kong 50 continues its bounce up off of 25,500, with support moving up toward 25,900 and the index challenging 26,000 with next potential resistance near 26,120. RSI bouncing up off 50 confirms underlying uptrend remains intact. 

North American and European indices

US 30 is breaking out to a new all-time high today, clearing 21,400 and advancing on the 21,480 to 21,520 zone. Next potential resistance appears near 21,720 based on a Fibonacci projection from a previous advance. 

US SPX 500 is breaking out to a new all-time high today, clearing 2,448 and sitting on 2,450. Next potential resistance on a breakout appears near a measured 2,475. RSI confirms upward momentum intact. 

US NDAQ 100 is turning back upward, with the RSI regaining 50 to signal an upturn in momentum. The index has rallied up from 5,690 toward 5,770 with next potential resistance near 5,800 and 5,900. 

UK 100 continues to climb with the index rallying up off of 7,500 higher support toward 7,530 where a breakout would call off a head and shoulders top. Next resistance in place near 7,600. RSI bouncing up from 50 signals upward momentum re-accelerating. 

Germany 30 remains under accumulation, forming an ascending triangle below 12,900. Support has moved up toward 12,840 from 12,775 with the index trading near 12,860. Next potential resistance on a breakout possible near the 13,000 round number. RSI holding 50 indicates continuing underlying accumulation. 


Gold is breaking down today. It continues to fall away from a double top, breaking $1,254 a Fibonacci level and $1,250 on its way toward $1.246. Next potential support appears at the 200-day average near $1,240 then $1,230 a 38% retracement of the previous uptrend. RSI under 50 and falling confirms momentum turning increasingly downward. 

WTI crude oil tried to starting to rebound, but failed to overcome $45.00 round number resistance and has turned back downward. The price has taken out its previous low and dropped toward $44.10 with next potential support at the May low near $43.50. Falling RSI indicates increasing downward momentum. 


US Dollar Index is sitting just above 97.00 still trending sideways in a range between 96.30 and 97.50. RSI sitting on 50 confirms sideways momentum. 

EURUSD has dropped back under $1.1200 into the lower half of a $1.1120 to $1.1290 trading range. It looks like a top is forming with a bearish descending triangle of lower highs above $1.1120 emerging. RSI trending toward 50 indicates upward momentum fading and a downturn pending. 

GBPUSD faltered short of its 50-day average and failed to hold above $1.2790, keeping a bearish head and shoulders top intact. The pair has dropped back toward $1.2730 with next potential support near $1.2700 the $1.2670 both Fibonacci levels. RSI under 50 and trending downward indicates increasing distribution. 

NZDUSD ran into resistance near $0.7300 and has dropped back toward $0.7230 in what looks like a normal correction to work off an overbought RSI. The pair remains in an uptrend above $0.7200 with more support possible near $0.7160. 

AUDUSD is still struggling with $0.7625 Fibonacci resistance but at the same time, higher lows for the pair indicate continuing accumulation with initial support near $0.7590 then $0.7565. Next potential resistance on a breakout possible near $0.7670. 

USDSGD appears to be turning upward with support moving up toward $1.3810 a Fibonacci level, and the pair advancing on $!.3875 with next potential resistance near $1.3890 then $1.3950. RSI testing 50 where a breakout with signal an upturn in momentum. 

USDJPY is holding above 110.60 where it recent broke out of a downtrend and over its 200-day average. RSI climbing above 50 today confirms momentum turning back upward with the pair advancing to test 111.55. Next potential resistance near 112.15. 

GBPJPY’s latest rally attempt has been contained by its 50-day average near 142.45, and 50 on the RSI. Breakouts over this levels would signal an upswing with next potential resistance near 143.30 while failures would keep the recent downtrend intact with next potential support near 140.40.  

EURJPY has confirmed Friday’s breakout from a downtrend, over 123.50, treading near 124,.35 with next potential resistance near 125.00 then 125.80. RSI has regained 50 and broken out of a downtrend to signal momentum turning back upward. 

USDCAD is hanging around between $1.3200 and $1.3300 recently trading near $1.3220 while consolidating recent declines and working off an oversold RSI. This appears to be normal pause within an ongoing downtrend below the 200-day average near $1.3340. Next potential downside support near a measured $1.3100.  

CMC Markets is an execution-only service provider The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. 

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