With the US closed it comes as no surprise that most markets are pretty steady today. We are seeing quite a bit of action in crude oil and CAD where bullish reversals are underway that suggest recent downtrends may be nearing an end. Similarly, GBP is starting to show signs of bottoming out relative to USD and EUR.
North American and European Indices
US 30 has leveled off near 16,030 a Fibonacci level trading between 15,970 and 16,130.
US NDAQ 100 is holding above 4,080 a Fibonacci level trading between 4,140 and 4,180.
US SPX 500 has stabilized in the 1,875 to 1,900 area.
Germany 30 is having an inside day consolidating Friday’s losses in the 9,430 to 9,630 range above 9,320 support near the September low and below 9,725 resistance. A higher low in the RSI suggests downward pressure starting to ease.
UK 100 continues to hold 5,760 support completing a big double bottom, while RSI rising toward 30 indicates downward pressure easing. Currently trading near 5,800 with initial resistance near 5,855 then 6,000.
Gold remains in an uptrend holding above $1,086 and trading between there and $1,092 digesting Friday’s rally below $1,100 resistance. RSI holding 50 confirms underlying uptrend intact.
Crude Oil WTI appears to be forming a bear trap bottom, having broken $29.00, diving toward $28.20 and rallying toward $29.70 overnight. An extremely oversold RSI indicates recent downtrend overextended and a rebound possible at some point.
US Dollar Index is sitting on 9.00 within a 98.00 to 99.60 trading range. RSI indicates momentum flat to slightly upward.
EURUSD continues to trend sideways between $1.0800 and $1.1000 with neutral momentum confirmed by RSI sitting on 50. Recently trading between $1.0880 and $1.0910.
EURGBP has slumped back toward 0.7600 after encountering resistance near 0.7700. RSI overbought suggests potential for a trading correction but it remains in an uptrend above the recent 0.7500 breakout point.
GBPUSD held Friday’s low near $1.4250 and has started to rebound, bouncing back toward the $1.4280 to $1.4310 area initially with next resistance possible near $1.4355 then $1.4440. RSI still quite oversold suggesting potential for a rebound.
USDCAD may be forming a bull trap top having short up toward $1.4625 overnight before slumping back toward $1.4500. Massively overbought RSI and a double top suggest we could be close to a buying climax with potential for a significant reversal. Next potential support near $1.4490 then $1.4400.
CADUSD has bounced back up toward $0.6900 after taking out $0.6800 and trading as low as $0.6845 in what looks like ti could be a bear trap bottom. Extremely oversold RSI and a double bottom suggests potential for a rebound but it needs to retake $0.7000 to call off its current downtrend.