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Chart Signals: Resource dollars, commodities and indices turn downward

Chart Signals: Resource dollars, commodities and indices turn downward

We’re been seeing signs of exhaustion in risk markets lately and today saw support give way and corrections start in earnest across a number of markets. Declines in gold, crude oil and copper dragged on AUD, CAD and NZD and could weigh on Australian stocks today. JPY, on the other hand, has picked up over the last few hours.

Asia Pacific Indices

Australia 200 is coming under pressure falling from near 5,160 toward 5,110 with next potential support near 5,070 then 5,000 where a round number and Fibonacci test converge. RSI falling under 50 signals momentum turning downward.

Japan 225 dropped back under 17,000 falling toward 16,890 after running into Fibonacci resistance near 17,145. RSI still suggests a sideways trend that could see the index bounce around within a 16,535 to 17,300 channel.

Hong Kong 50 is starting to roll over again with resistance falling toward 20,700 a round number and Fibonacci level with the index falling under 20,575 and 20,500 on its way toward 20,460 with nest potential support near 20,280 then 20,210. RSI under 70 and falling confirms upward momentum fading and a correction deepening.

India 50 has levelled off in the 7,640 to 78,730 range pausing to consolidate recent gains before potentially mounting an assault on 7,755 with next resistance after that on trend near 7,960. Rising RSI indicates upward momentum still increasing.

North American and European Indices

US 30 has levelled off in the 17,510 to 17,610 range with next support as it digests recent gains and works off an overbought RSI through sideways consolidation. Next support and resistance near 17,485 and 17,770 respectively.

US NDAQ 100 started out strong but met resistance near 4,455 and dropped back toward a retest of support in the 4,405 to 4,420 area near its recent breakout point. RSI touched overbought as it peaked so it may need to consolidate in the near term.

US SPX 500 has levelled off in the 2,040 to 2,060 range below Fibonacci resistance, pausing to work off an overbought RSI. Next downside support possible near 2,015, a Fibonacci level and the 200-day average.

Germany 30 is on the move upward again out of a head and shoulders base. 10,000 has flipped to become round number support and the index retested 10,100 again but faltered. Next resistance on a breakout possible near 10,170. RSI confirms upward momentum increasing.

UK 100 continues to consolidate recent gains between 6,100 and its 50-day average near 6,260 with RSI confirming sideways momentum.


Gold is breaking down today, nosediving after breaking an uptrend support line near $1,245 down through $1,228 a Fibonacci level and then on toward the $1,217 to $1,225 area with next potential support near $1,200. RSI breaking under 50 confirms a downturn in momentum.

Crude Oil WTI  has turned downward after $40.00 support gave way falling down through $39.30 toward $38.30 both Fibonacci levels with next potential support near $36.10. RSI rolling down from 70 indicates a correction getting underway.


US Dollar Index keeps creeping back up, clearing the top of last Thursday’s candle and holding 95.80 higher support while advancing on 96.25 with next resistance after that possible near 96.70.

EURUSD has stabilized for now near $1.1200 in the $1.1160 to $1.1220 area but with RSI still indicting downward momentum fading, a retest of $1.1111 round number and Fibonacci support remains possible.

NZDUSD has stabilized near $0.6700 in the $0.6885 to $0.6725 area with next support near $0.6625 at the 50 and 200-day averages. RSI bouncing around 50 indicates a sideways trend within a $0.6560 to $0.6870 range.

AUDUSD has turned downward again falling from a lower high near $0.7660 toward $0.7520 with next support possible near $0.7500 then $0.7400. RSI rolling down from 70 confirms a correction getting underway.

USDCNH continues to turn upward with the pair rallying up off of 6.5000 toward 6.5080 confirmed by RSI peeking back above 50. The pair is testing downtrend resistance with a run at 6.5285 a Fibonacci level possible on a breakout.

USDJPY has dropped back toward the 112.30 to 112.50 area after running into resistance near 113.00 the midpoint of a 111.00 to 115.00 trading channel.

EURJPY has resumed is downtrend with the pair falling back toward 125.60 from 126.20 resistance confirmed by the RSI falling back under 50. Next support possible near 125.00 then 124.75.

CADJPY has dropped back toward 85.00 falling within its 84.55 to 85.20 trading range. RSI nearing 50 where a breakdown would confirm a downturn with next support at the 50-day average near 83.60. .

USDSGD continues to rebound rallying up off of $1.3600 higher support toward the $1.3650 to $1.3680 range with next potential resistance near $1.3730 then $1.3800. RSI climbing toward 50 confirms a bounce underway and a bigger upturn pending.

USDCAD has started an upward correction in earnest, rallying up from $1.3040 through $1.3090 and on toward $1.3200 with support rising toward $1.3180. RSI indicates downward pressure easing and an upturn pending. Next bounce resistance possible near $1.3300.

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