WTI has fallen off the table, losing nearly 4% on the day and dropping to test the $45.00 round number. This has turned traders against resource sensitive markets with CAD, AUD and NZD all dropping back as well.
Asia Pacific Indices
Australia 200 continues to struggle with 5,800 resistance, bumping into its 50-day average near 5,785. RSI bouncing around 50 indicates sideways momentum which suggests its 8,675 to 5,825 channel may hold for a while. Initial pullback support possible near 5,740.
Japan 225 is sending mixed signals while bouncing around between its 50-day average near 19,865 and 20,300. A lower high near 20,140 suggests the index may be rolling over but RSI holding 50 and the index holding 20,000 suggest the previous uptrend may not be over yet.
Hong Kong 50 is testing support at its 50-day average near 25,425 which has held so far with the index bouncing back above 25,000 toward 25,540. RSI slipping under 50, however and a trend of lower highs suggest a downturn may be underway. Next potential support near 25,215.
North American and European Indices
US 30 is bumping up against 20,550 resistance with a double top forming. The index has settled back under 21,500 toward 21,470, and RSI drifting back toward 50 indicates slowing upward momentum. Next potential support near 21,365 then 21,300.
US SPX 500 is holding steady near 2,430 just above the middle of a sideways channel between 2,400 and its recent high near 2,450. RSI sitting on 50 confirms sideways momentum dominant for the time being.
US NDAQ 100 has popped up through 5,585 rallying from support in the 5,560 to 5,570 zone back up toward 5,650. RSI suggests downward pressure levelling off and possibly starting to ease. Initial resistance possible near 5,690.
UK 100 continues to hold above 7,300 bouncing up into the 7,350 to 7,375 area, while RSI suggests downward pressure may have peaked. Still, it needs to retake 7,400 to call off a head and shoulders top and signal an upturn.
Germany 30 remains in a downtrend, unable to retake 12,475 resistance, confirming its recent breakdown. Trading in the 12,420 to 12,470 area, next potential support appears near 12,305. RSI still below 50 indicates ongoing distribution.
Gold remains under pressure, trading between $1,217 and $1,224 confirming the recent break under its 200-day average near $1,233. Next potential downside support near the $1,200 level.
WTI crude oil took a sharp turn downward, falling from near $47.20 down through $46.70 on its way back to a test of $45.00 round number support which has held so far. RSI dropping back toward 50 indicates a downturn possible. Initial resistance appears near $45.40 with next downside support near $44.85 a Fibonacci level.
US Dollar Index is retesting 96.30 its recent breakdown point. If resistance holds, it would confirm a new downleg underway with initial support in place near 95.90 then 95.40. a breakout would signal an upturn with next potential resistance near 96.70 then 97.10.
EURUSD remains in correction mode, trading near $1.1330 below its recent peak near $1.1450 but above $1.1290 its recent breakout point. RSI falling away from 70 but well above 50 confirms a trading correction underway.
GBPUSD appears to be attracting support above $1.2900 and its 50-day average near $1.2865 indicating the recent drop back from $1.3040 and under $1.3000 as a normal trading correction within an uptrend.
NZDUSD has started to roll over, with resistance falling toward $0.7300 and the pair falling toward $0.7265. RSI falling after a negative divergence indicates upward momentum fading and a correction deepening. Next potential support near $0.7245 then $0.7200. Note that a golden cross is pending which would indicate the underlying uptrend remains intact through this correction phase.
AUDUSD continues to turn downward with resistance falling from $0.7625 down through $0.7600 and on toward $0.7580. Next potential support appears near $0.7535 where a Fibonacci level and the 200-day average converge. RSI nearing 50 where a break would signal a downturn in momentum.
USDSGD appears to be turning back upward, bouncing up off of $1.3810 Fibonacci support toward $1.3835 with next potential resistance at the 50-day average near $1.3890. RSI gaining on 50 indicates momentum poised to turn upward with next resistance on a breakout possible near $1.3945 a Fibonacci level.
USDJPY continues to climb, clearing 113.35 a Fibonacci level and advancing on 113.65. Rising RSI indicates accelerating accumulation. Next potential resistance tests near 114.00 then 114.60 with next support near 112.85.
GBPJPY continues to encounter resistance near 147.00, dropping back toward 146.50. A lower high in the RSI also suggests upward momentum may have peaked for now. Initial support in a pullback possible near 146.10 then the 145.00 round number.
EURJPY is really overbought on the RSI and struggling with 129.00 resistance, leaving it vulnerable to a correction. The pair has dropped back toward 128.30 with next potential support near 127.50 then 126.40.
USDCAD continues to consolidate recent losses and work off an oversold RSI in the $1.2900 to $1.3000 area, recently trading near $1.298 up from $1.2950.