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Chart Signals: Oversold indices mean China data could have a big impact on trading

Chart Signals: Oversold indices mean China data could have a big impact on trading

Coming off a quieter than usual session due to the US holiday, trading could be quite active today on the China GDP and other data that comes out around 1:00 pm AEDT today. CNH has also been bouncing back with USDCNH turning downward again.

Asia Pacific Indices

Australia 200 has been holding above 4,790 in the 4,820 to 4,860 range suggesting Friday’s selloff may have been a selling climax. RSI suggests downward pressure fading. Next key upside resistance test up near the 5,000 round number on a rebound.

Japan 225 has been trying to level off in the 16,675 to 17,000 range above Friday’s low near 16,565. RSI still oversold suggesting room for a rebound with next potential resistance on a breakout near 17,520.

Hong Kong 50 is coming off an inside day that it spent trying to stabilize in the 19,180 to 19,320. Signals are mixed, it finished near the lows a bearish sign but RSI is really oversold suggesting potential for a significant rebound. Nest upside resistance possible near 19,835 with next support near the 19,000 round number.

India 50 continues to trend lower with the index falling toward 78,305 and resistance falling toward 7,430 following a break of 7,400 with nest measures support tests possible near 7,300 then 7,100 on trend.


US Dollar Index is sitting on 99.00 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.

NZDUSD is having an inside consolidation day with pressure backing off as RSI becomes oversold suggesting the potential for a trading bounce. Support has moved up from $0.6375 toward $0.6440 with initial resistance possible near the $0.6500 round number then $0.6590.

AUDUSD tried to rebound but didn’t get very far, running into resistance enar $0.6925, way short of the $0.7000 it needs to clear to call off the current downtrend. RSI is oversold though so support cold still come in around $0.6835.

USDCNH has rolled back under 6.6090 a 23% retracement of the previous uptrend, confirming a correction underway while RSI testing 50 suggests a downturn pending. Next downside support possible near 6.5820 then a recent low near 6.5625 and the 38% retracement level near 6.5325.

USDJPY has bounced up off of 116.50 support toward 117.30 as it starts to work off an oversold RSI with an upward correction. Next potential resistance in the 118.00 to 118.40 area.

EURJPY continues to consolidate with a symmetrical triangle forming in the 127.00 to 129.00 range recently trading near 127.90 as it pauses to ease and oversold RSI in the context of an ongoing downtrend.

CADJPY is holding 80.00 round number support so far bouncing up toward 80.60. RSI really oversold suggests potential for a trading bounce at some point with next potential resistance near 82.50.

USDSGD is sending mixed signals with the pair sitting on $1.4400 while an ascending consolidation triangle forms between $1.4250 and $1.4450 but RSI suggests upward momentum fading.

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