Chart Signals: Resource Dollars, gold and indices take off as USD and oil retreat
The Yellen speech sparked a major risk on move sending USD downward and igniting big rallies in AUD, NZD, CAD, gold and stocks, with SGD and EUR also gaining. JPY has been lagging particularly relative to CAD and EUR helping Japanese stocks to continue their rebound.
Asia Pacific Indices
Australia 200 dipped below 5,000 briefly but has bounced up off of 4,980 toward 5,030 in what looks like a classic bear trap reversal. RSI not confirming a bounce yet and still below 50 but if this holds it would set another higher low on trend with next resistance near 5,120 then 5,180.
Japan 225 is retesting 17,000 as round number support, but higher lows in trend and RSI holding 50 indicate the index remains under accumulation above 16,875 support with next resistance looming near 17,145 then 17,300.
Hong Kong 50 has attracted support at a higher level near 20,200 and has bounced back up into the 20.260 to 20.400 area. RSI holding 50 confirms underlying uptrend remains intact. Next resistance possible near 20,565 a Fibonacci test then the March high near 20,830.
India 50 continues to roll over with the index falling away from 7,750 toward 7,600 with resistance falling toward 7,660. RSI back under 70 signals a correction starting with next potential support near 7,515 a Fibonacci level.
North American and European Indices
US 30 slipped under 17,500 toward 17,430 then came storming right back, rallying up through 17,590 and on toward 17,630 with nest potential resistance near 17,665. RSI still overbought so it may continue to consolidate but the risk of a deep sharp correction continues to fade.
US NDAQ 100 is breaking out today, rallying up off of higher support near 4,390 up through 4,450 with next potential resistance near 4,500 where a round number and Fibonacci level converge. Rising RSI confirms upward momentum increasing.
US SPX 500 is climbing within its 2,020 to 2,060 trading range bouncing up from near 2,030 back above 2,040 the channel midpoint and a Fibonacci level and climbing on toward 2,050. RSI overbought so we could see more choppiness within this range as it consolidates recent gains.
UK 100 has been bouncing around between 6,070 and 6,170 recently climbing back above 6,100 and on toward 6,130. Index appears to be trending sideways between 6,000 and 6,250 with RSI testing 50.
Germany 30 remains stuck below 10,000 and drifting around between 9,810 and 950. RSI indicates flat to slightly positive momentum. Next potential support near 9,730 with next resistance possible near 10,115.
Gold has turned decisively back upward rallying up out of a $1,215 to $1,225 support zone blasting through $1,228 to kick off a rally and driving on toward $1,240 with next upside resistance near $1,250 then $1,260. RSI back above 50 confirms momentum turning upward again.
Crude Oil WTI continues to roll over with $38.30 emerging as lower resistance and the price sliding toward the $36.80 to $37.40 zone with next potential support near $36.10. RSI falling toward 50 indicates momentum downshifting to neutral and a full downturn pending.
US Dollar Index slipped back under 96.00 falling initially toward 95.80 then plunging down toward 95.20 with next potential support near the 95.00 round number then 94.60. RSI stuck below 50 indicates broader downtrend remains intact for now.
EURUSD has resumed its uptrend, rallying up off a higher low near $1.1170 toward $1.1210 initially then driving up through $1.1255 and on toward $1.1290 with next potential resistance near $1.1310 then $1.1370 the February high. RSI climbing up off 50 confirms underlying uptrend resuming.
NZDUSD is taking off today soaring up off of $0.6720 straight into a retest of channel resistance near $0.6870 for the pair and 60 on the RSI. Breakouts through there would signal the start of a new upleg that could challenge the $0.7000 round number. Support rises toward $0.6830.
AUDUSD is rallying up off $0.7500 driving up through $0.7570 on its way toward $0.7650 with next potential resistance near $0.7680 its March high then $0.7740.
USDCNH is trending sideways holding above 6.5000 where it broke out of a downtrend but struggling with resistance near 6.5285 a Fibonacci level. RSI sitting on 50 confirms neutral momentum.
USDSGD has turned sharply back downward, diving from near $1.3700 down toward $1.3550 with next potential support at the March low near $1.3480.
USDJPY ran into resistance at a Fibonacci cluster near 113.85 plus 50 on the RSI to confirm its primary downtrend remains intact. It has since plunged down toward 112.80 with next potential support near 112.25 then 111.65 and channel support near 111.00.
EURJPY is breaking out today, clearing 127.00 and its 50-day average and advancing on 127.40 with next upside resistance possible near 128.25 then 129.00 on trend. Rising RSI confirms upward momentum increasing.
CADJPY is breaking out today, clearing 86.20 the top of a Fibonacci trading channel with next potential resistance near 87.00 then 87.90. RSI holding 50 indicates accumulation trend continues.
USDCAD has resumed its downtrend after a trading bounce peaked short of $1.3300. The pair has since dropped back from $1.3210 toward $1.3160 and then on toward $1.3080 with next potential support near $1.3030 and $1.3000. RSI faltering near 50 and turning downward confirms broader downtrend remains intact.