Despite being incredibly overbought, US indices continue to drive to new highs with the Dow clearing 21,000 today. The sense of euphoria feels like a buying climax but for now, RSIs continue to confirm upward momentum. It’s important for traders to recognize the trends look intact but could turn on a dime. Asia Pacific indices have been climbing but remain below recent highs. JPY and NZD are under pressure as USD breaks out as well.
Asia Pacific Indices
Australia 200 has bounced up off of 5,700 and 50-day average support toward 5,760. It next faces resistance near 5,800 and really needs to clear 5,830 to call off a recent double top. RSI back above 50 encouraging.
Japan 225 has regained 19,500 advancing on the 19,580 to 19,620 area. The index has broken out of a short-term downtrend but needs to clear 19,620 to break out of a sideways channel. If successful, next potential resistance appears at the 20,000 round number.
Hong Kong 50 is retesting 24,000 as resistance while support moves up toward 23,950 from 23,900. Next resistance on a breakout possible near 24,095 then 24,220 with next downside support possible near 23,790.
North American and European Indices
US 30 is breaking out to a new all-time high today, clearing 20,875 then blasting through 21,000 on its way toward 21,120 trading as high as 21 150. RSI extremely overbought but is still confirming increasing upward momentum for now.
US SPX 500 is breaking out today, decisively clearing 2,366 and advancing the 2,400 round number as support rises toward 2,395 from 2,387. RSI still really overbought but also indicates upward momentum is still increasing for now.
US NDAQ 100 has broken out to the upside clearing 5,365 to call off a double top and advancing on 5,400 with next measured resistance possible near 5,430. RSI overbought and a negative divergence suggests upward momentum may be peaking.
US Small Cap 2000 has cleared 1,410 and 1,410 channel resistance but hasn’t been able to get much further encountering resistance near 1,415 with its next measured test near 1,440. Support rises toward 1,405.
UK 100 is breaking out today, clearing 7,365 and advancing on 7,390 with next potential resistance near 7,400 then a measured 7,430. RSI breaking out of a downtrend confirms upward momentum accelerating.
Germany 30 has broken out over the 12,000 to signal the start of a new upleg and call off a double top. The index has advanced on 12,090 with next measured resistance possible near 12,175 then 12,300. A negative RSI divergence, however, suggests upward momentum slowing.
Gold dipped down toward $1,327 before finding support and has since been on the rebound, regaining $1,242 on its way back up toward a retest of a Fibonacci cluster in the $1,250-$1,255 area. A triple top in the RSI suggests it could be starting a consolidation phase which could keep it under its 200-day average near $1,262.
Crude Oil WTI is holding steady just below $54.00 near $53.60. It remains in an uptrend of higher lows above $53.00 forming an ascending triangle below $54.60 with the $55.00 round number looming just beyond that. RSI indicates a sideways to slightly upward trend in momentum.
US Dollar Index is breaking out to the upside today rallying up off of 101.00 and advancing on 101.70 with next potential resistance near 102.00 then a measured 103.00. Rising RSI confirms upward momentum increasing. Initial support rises toward 101.50.
EURUSD has resumed its downtrend, taking out $1.0585 and trading near $1.0550 after testing $1.0520. It’s still forming a bearish descending triangle above $1.0500 with next support after that near $1.0450. RSI under 50 and falling confirms increasing distribution.
GBPUSD is breaking down today, diving down from $1.2400 through $1.2355 and falling on toward $1.2300. RSI diving under 50 confirms momentum turning decisively downward. Next potential support appears near $1.2245.
NZDUSD is breaking down in a big way today, plunging from $0.7200 down through its 50 and 200-day averages heading toward $0.7100. RSI breaking under 50 confirms a downturn underway with next potential support near the $0.7000 round number.
AUDUSD is bouncing up off $0.7640 support with more possible near $0.7600, challenging $0.7700 resistance with more possible near $0.7725. RSI falling toward 50 indicates upward momentum slowing.
USDSGD is turning back upward having recently completed a bear trap washout just under $1.4000. Regaining $1.4085 a Fibonacci level signals an upswing underway with next potential resistance $1.4155.
USDJPY is breaking out of downtrends in both the pair and the RSI today with the RSI also clearing 50 to confirm an upturn. The pair has cleared 113.00 advancing on 113.75 with next potential resistance near 114.05 a Fibonacci level then the 50-day average near 114.40.
GBPJPY is sitting just below 140.00 near the middle of a 138.10 to 142.25 sideways trading range between two Fibonacci levels and also between its 50 and 200-day moving averages.
EURJPY is turning upward again today, breaking out of downtrends in both the pair and the RSI. The pair is advancing on 120.00 while the RSI is advancing on 50 where breakouts would confirm an upturn. Next potential resistance near 121.00 then 122.20 with support moving up toward 119.60 from 119.00.
USDCAD is breaking out over $1.3300 today and out of a sideways channel Next potential resistance appears near $1.3350 then $1.3380 with support rising toward $1.3280 from $1.3210. Rising RSI confirms upward momentum accelerating.