A big bounce for crude oil and renewed interest in commodity currencies has sparked big recovery rallies for commodity currencies with CAD, AUD and NZD staging strong gains from depressed levels. A number of RSIs crossed out of overextended zones confirming that a significant correction of recent trading is undeway. Indices have also regained their footing and appear to have technical room to run with many markets still oversold.
Asia Pacific Indices
Australia 200 has been climbing within a 4,840 to 4,940 channel with a breakout over 5,000 needed to confirm the start of a new uptrend with next potential resistance after that near 5,045 a 23% retracement of the 2015 downtrend. RSI suggests downward pressure weakening.
Japan 225 has a big upward reversal underway, completing a bear trap dip below 16,000 then surging up into the 16,300 to 16,500 range with next potential resistance near 16,625 then 16,900. RSI still oversold indiates lots of technical room for a rebound.
Hong Kong 50 remains deeply oversold on the RSI and appears to be trying to carve out a bottom in the 18,560 to 19,300 range but it needs to break out of this range to signal an upturn. Recently traded between 18,700 and 18,900.
India 50 is trying to level off in the 7,230 to 7,390 range with support moving up toward 7,250 and initial resistance near 7,320 but its attempt at an upturn has been more tentative than other markets.
North American and European Indices
US 30 took a big run at 16.000 to 16,030 resistance but wasn't able to crack that barrier yet, slipping back into the 15,800 to 15,950 area still well above 15,700 adn 15,640 support. RSI still oversold indiating potential for additional upward corrections.
US NDAQ 100 has stabilized in a Fibonacci trading channel between 4,080 and 4,195 following a bear trap washout that held 4,000 support. Next upside tests possible near 4,230 then 4275.
US SPX 500 continues to pop up off its successful retest of 9,815 support rallying into the 1,850 to 1,890 area with next potential resistance near 1,915. RSI still oversold indicates potential for further trading bounces.
Germany 30 successfully retested 9,320 support and has rallied up into the 9,500 to 9,660 area with nest potential resistance near 9,760 then 9,890 a Fibonacci level. RSI levelling off above 30 indicates a trend change underway.
UK 100 continues to rebound up off of 5,600 support rallying from 5,690 into the 5,750 to 5,820 area with next potential resistance near 5,855. A positive RSI divergence indicates recent downtrend exhausted and an upturn pending.
Gold continues to climb, regaining the $1,100 level moving up from $1,086 support. A smaller, higher saucer bottom following a larger lower one is forming a cup with handle base below $1,110. RSI above 50 and rising indicates upward momentum increaseing. Next resistance possible near $1,125 on trend.
Crude Oil WTI continues to find support new support, rallying up from $26.60 into the $28.30 to $28.80 as selling pressure eases. RSI regaining 30 signals a trading bounce underway with next significant resistance at the $30.00 round number.
US Dollar Index is holding steady near 99.00 below 100.00 resistance and in a 98.00 to 99.60 channel. RSI sitting on 50 confirms sideways momentum.
EURUSD fell to test the bottom of its $1.0800 to $1.1000 trading channel on dovish Draghi comments but held and bounced back toward $1.0880 with next resistance near $1.0925 down from $1.0970. RSI sitting on 50 confirming the current sideways consolidation phase continues.
NZDUSD is breaking out today, clearing $0.6500 to signal an upturn and carrying on toward $0.6550 while support rises toward $0.6490 from $0.6450. RSI indicates downward momentum fading and an upturn possible with next potential resistance near $0.6590 then the 50-day average near $0.6630.
AUDUSD has turned decisively upward today, regaining $0.6900 and taking a run at the $0.7000 round number with support rising toward $0.6980. Next potential resistance nar $0.7020 then $0.7060. RSI climbing toward 50 indicates recent downtrend fading and an upturn pending.
USDCNH continues to stabilize near 6.6090 a 23% retracement of the previuos uptrend trading between 0.6030 and 6.6100. higher lows and RSI holding 50 suggest this is likely a pause witin an ongoing uptrend.
USDJPY continues to climb up out of yesterday's bear trap reversal that saw it bounce up off of 116.00. Support has moved up toward 117.00 with the pair advancing on 117.80 with next potential resistance near 118.20 then 118.80. RSI back above 30 and rising indicates downaward pressure weakening and an upturn pending.
EURJPY is rallying up out of a successful test of 126.15 support that appears to have completed a double bottom. The pair has advanced up into the 127.80 to 128.20 area with next potential resistance near 128.28. RSI gaining on 50 confirms an upward correction underway.
CADJPY is staging a big turnaround rally today. Building on yesterday's bear trap under 80.00, the pair has soared up toward 82.50 with support rising toward 81.90. RSI moving back up above 30 from oversold territory confirms a big trading bounce underway. Next potential resistance near 83.55.
USDSGD continues to roll over, with resistance falling toward $1.4300 and the pair falling towqrd $1.4330 with next support possible near $1.4320 then $1.4260. RSI falling toward 50 indicates upward momentum fading.
USDCAD plunged from near $1.4530 toward $1.4230 which along wiht RSI diving under 70 from overbought land confirms the start of an overdue big trading correction. Having completed a 23% retaacement of the advance from October near $1.4245, the pair has stabilized in the $1.4270 to $1.4320 range to digest this week's big rollover.
CADUSD is breaking out of a downtrend in a big way today, rallying up from $0.6880 toward the $0.7000 round number with next potential resistance near $0.7060 then $0.7110. RSI regaining 30 from deeply oversold conditions signals an upswing underway.