Indices staged a strong turnaround Friday with a number of bear traps and other bullish reversals suggesting the recent correction may be easing for now. Keep an eye out for potential golden crosses in UK100 and crude oil (plus GBPUSD). AUD and NZD remain under pressure in the wake of last week’s surprise RBA interest rate cut.
Asia Pacific indices
Australia 200 is still trending sideways between 5,185 and 5,335 two Fibonacci levels. RSI confirms upward momentum shifting into neutral.
Hong Kong 50 has bounced up off 20,000 successfully retesting support there. RSI near oversold suggests potential for a relief rally. Recently trading between 20,070 and 20,210 a Fibonacci level, next potential resistance appears near 20,360 then 20,550.
India 50 found support near 7,670 and has been trying to rebound but really needs to retake 7,750 to call off its recent downtrend with next resistance possible near 7,875 if successful.
Japan 225 continues to stabilize in the 15,810 to 16,290 range around 16,055 a Fibonacci level. RSI indicates downward pressure easing and base building underway. Next resistance on a breakout possible at the 50-day average near 16,675.
North American and European Indices
US 30 successfully retested its 50-day average near 17,525 and bounced back up toward 17,750 but it still needs to clear 17,800 to start calling off the current downswing. RSI on 50 where an upturn would confirm the recent correction has ended. Next resistance possible near 17,910 then 18,055.
US NDAQ 100 staged a bear trop reversal Friday dipping under 4,300 then rallying back up toward 4,345 channel and Fibonacci resistance. RSI suggests downward momentum slowing. Next resistance at the 50 + 200 day averages near 4,415.
US SPX 500 completed a bear trop dip under its 50-day average and 2,040 then reversed strongly upward taking a run at 2,060 as bulls reassert themselves. Next resistance tests near 2,0870 then 2,100.
UK 100 staged a positive reversal falling under 6,100, retesting 6,050 support and then popping back up toward 6,160 to indicate recent downward pressure may be exhausted. Next resistance near 6,200 and the 50 + 200-day moving averages with a golden cross pending.
Germany 30 has started to stabilize at a higher level, bouncing up off of 9,750 support back up towards 9,925 with next resistance looming near th 10,000 round number. RSI firming off 40 suggests the recent downdraft may be ending.
Gold has stabilized near $1,285 having bounced up off of $1,268. RSI holding near 60 indicates uptrend intact following a correction. Resistance remains in place near $1,300. RSI indicates underlying uptrend momentum still intact.
Crude Oil WTI remains under accumulation still trending higher with support moving up toward $43.40 from $42.50. Resistance appears near $44.30 then $45.00. RSI suggests upward momentum levelling off as the averages approach a golden cross.
US Dollar Index has paused its rebound just short of resistance near 94.00. Support rising toward 93.80 from 93.20 as a 92.00 to 95.00 trading channel emerges.
EURUSD has stabilized near $1.1400 setting a higher low on trend near $1.1385 to confirm the drop back from $1.1600 was a trading correction. Overbought conditions have eased and the underlying uptrend appears to be resuming with initial resistance near $1.1465.
NZDUSD is sending mixed signals. The pair successfully tested $0.6800 and its 50-day average to keep its uptrend intact with next resistance near $0.6900 then $0.7000. But RSI sliding under 50 indicates momentum turning downward with next support on a breakdown near $0.6755.
AUDUSD is breaking down having taken out trend support near $0.7445 and diving toward $0.73560 with net potential support at its 200-day average near $0.7260. RSI under 50 and diving indicates downward momentum accelerating.
USDCNH is testing the top of its 4.4570 to 6.5285 trading channel trading well above 6.5000 in the 6.5100 to 6.5180 range. RSI trending upward confirms accumulation building.
USDSGD has broken out of a downtrend clearing $1.3575 and is now testing its 50-day average near $1.3620 looking for confirmation. Nest potential resistance near $1.3685 then $1.3755. RSI back above 50 signals momentum turning upward.
USDJPY is trying to build a base in the 105.50 to 107.50 range. Higher lows in the RSI suggest downward pressure weakening but trading remains choppy with the pair recently bouncing between 106.50 and 107.20.
EURJPY continues to attract support near 121.50 with more possible near 120.00. Pair has popped back up toward 122.20 with next resistance near 123.60 then 124.80.
CADJPY held 92.45 Fibonacci support setting higher lows fort the pair and the RSI to keep its underlying uptrend intact. Next resistance near 83.00 then 84.55.
USDCAD remains in rebound mode, clearing $1.2900 but approaching $1.3000 a significant resistance test where a round number, 50-day average and a Fibonacci test all converge.