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Chart Signals: New support for indices and resource currencies

Chart Signals: New support for indices and resource currencies

US indices have shrugged off recent weakness and appear to be gaining support while the Japan 255 has been benefiting from JPY weakening relative to USD and EUR. Resource dollars AUD, NZD and CAD have been climbing along with metal prices. A big head and shoulders base appears to be forming in GBP.

Asia Pacific Indices

Australia 200 finished last week on its back foot breaking down below 5,100 and falling toward 5,070 with next potential support near 5,000. RSI breaking under 50 confirms momentum turning downward. Initial resistance if it manages to turn around possible near 5,145.

Japan 225 is advancing within a 16,680 to 7,280 channel trading back up above 17,000. Higher lows for the index and RSI holding 50 indicate ongoing accumulation. Next potential resistance near 17,310 then 17,400 on trend.

Hong Kong 50 has been rolling over, finishing last week testing 20,210 a Fibonacci level and 50 on the RSI where breakdowns would signal the start of a new downleg with next support at the 20,000 round number. Initial resistance on a rebound possible near 20,250 then 20,410.

India 50 has encountered some resistance near 7,750 and appears to be pausing having dropped back toward 7,610 while RSI has started to backslide. Next support near 7,590 then 7,515.

North American and European Indices

US 30 has clawed back most of its early losses rallying back up toward 17,580 having established support at a higher level near 17,500. RSI remains overbought so we could see the index continue to bounce back and forth between 17,400 and 17,665.

US NDAQ 100 is trading between 4,400 and 4,420 near its 200-day average as it continues to trend sideways in the 4,375 to 4,455 range. RSI still trending upwards indicates this as a common pause within an uptrend.

US SPX 500 is holding steady just above 2,040 having set a higher low near 2,020 last week and bouncing off 2,030 today to keep its underlying uptrend intact while it works off an overbought RSI. Upside resistance in place near 2,060.


Gold has climbed up off of $1,206 into the $1,214 to $1,218 range. RSI remains below 50 however, and it still needs to retake $1,225 or really $1,228 to call off its current downtrend. Next potential support near $1,200 where a round number and the 200-day average converge.

Crude Oil WTI is holding steady near $38.30 a Fibonacci level having established support at a higher low near $37.00 last week. It could bounce around between there and $40.00 or $40.75 while consolidating gains made over the last month or so. Recently trading in the $37.60 to $38.70 zone.


US Dollar Index has levelled off near 96.00 having encountered some resistance near 96.40, while RSI faltering near 50 suggests momentum shifting into neutral. Support rises toward 95.85 from 95.65.

EURUSD has rallied up toward $1.1200 from $1.1160 and holding above $1.1111 Fibonacci support. RSI drifting back toward 50 and the 50 and 200-day averages crossing back and forth indicates a sideways trend between $1.1050 and the averages up toward $1.1335 with initial resistance near $1.1210 then $1.1255.

GBPUSD appears to be carving out the right shoulder of a head and shoulders base, rallying up off of $1.4050 shoulder support then up toward $1.4160 and on into the $1.4240 to $1.4280 area with next potential resistance near $1.4400. RSI finding support above 40 a higher low that suggests downward pressure still weakening.

NZDUSD is coming off a bullish engulfing candle where it bounced up off a higher low near $0.6660 toward $0.6740. RSI holding 50 confirms underlying uptrend intact with next resistance possible near $0.6770 then $0.6870.

AUDUSD continues to trend upward, trading near $0.7550 up from $0.7475 where it set a higher low on trend. Next upside tests possible near $0.7600 then $0.7690.

USDCNH has encountered resistance near 6.5285 a Fibonacci level and dropped back toward 6.5170 in a trading correction but remains above 6.5000 a round number where it broke out of a downtrend, indicating base building continues.

USDJPY is bouncing around between 1213.10 and 113.60 below 113.85 Fibonacci resistance. A break through there and 50 on the RSI would signal the start of a new uptrend with next potential resistance near 114.65 where recent highs and the 50-day average converge.

EURJPY appears to be turning upward again, trading back up above 126.20 and testing its 50-day average near 126.90 with next potential resistance near 127.25 then 128.00.

CADJPY is climbing toward the top of a 84.55 to 86.20 Fibonacci trading range while RSI continues to hold above 50 keeping upward momentum intact. Next resistance on a breakout possible near 87.00 then 87.90.

USDSGD has dropped back toward $1.3700 from $1.3730 in what appears to e a pause following a rally up from $1.3590 over the last few days. RSI levelling off below 50 suggests recent bounce may be running out of steam.

USDCAD has turned downward again after running into resistance near $1.3340 on the pair and 50 on the RSI which signalled the recent trading bounce was be near an end. The pair has dropped toward $1.3170 from $1.3250 with next potential support near $1.3200 then $1.3130.

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