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Chart Signals: Resource Dollars Remain in Retreat

Chart Signals: Resource Dollars Remain in Retreat

Falling prices for oil and gold, plus a USD rally has put resource dollars under pressure today with CAD taking the baton from AUD and leading the way downward. Stocks also continue to struggle as seasonal factors continue to weigh on indices.

Asia Pacific Indices

Australia 200 failed to hold above 5,335 a Fibonacci level and channel top, and has been pounded back down into the 5,240 to 5,270 area. RSI falling away from 70 indicates a correction starting. Next potential support near 5,185 then 5,100.

Japan 225 continues to stabilize between 15,870 and 16,000 with RSI confirming downward pressure levelling off. Support emerging at a higher near 15,800 indicates recent selloff was a trading correction. Next bounce resistance near 16,165.

Hong Kong 50 remains under pressure dropping from near 20,465 into the 20,270 to 20,390 area. RSI indicates downward pressure still increasing and a retest of the 20,000 round number possible.

India 50 continues to break down, taking out 7,750 and dropping toward 7,690 with next potential support near 7,600 then 7,515. RSI back under 50 confirms momentum turning increasingly downward.

North American and European Indices

US 30 is under pressure again today dropping from near 17,770 toward 17,630 with a rebound in between failing near 17,730. RSI breaking under 50 confirms momentum turning downward with a test of the 50-day average near 17,510 possible.

US NDAQ 100 continues to retreat with 4,345 a Fibonacci level giving way and the index falling toward 4,300 with next potential support near 4,225. RSI confirms downward pressure increasing.

US SPX 500 keeps dropping back sliding toward the 2,046 to 2,052 area after breaking 2,060 with next potential support near 2,040 and the 500-day average then 2,105 and the 200-day average. RSI confirms downward momentum accelerating.

UK 100 has accelerated to the downside, confirming Tuesday’s break below its 50 and 200-day averages near 6,300 by carrying on down toward 6,100. RSI falling away from 50 confirms downward pressure increasing and the potential for a test of 6,000 growing.

Germany 30 has resumed its downtrend after a rally attempt failed short of 10,000 round number resistance. The index has dropped from 9,990 toward 9,820 with next potential support near 9,795 the bottom of an old gap. RSI under 50 and falling confirms downward momentum increasing.


Gold continues to fall away from $1,300 after failing to clear that round number a second time. $1,284 initial Fibonacci support failed and the price has dropped back toward $1,276 with next support possible at former resistance levels near $1,272 then $1,264.

Crude Oil WTI has stabilized in the $42.40 to $43.40 area up from its previous low near $41.55. RSI suggests a trading correction underway but underlying uptrend still intact. The 50 and 200-day averages keep creeping toward a golden cross.


US Dollar Index is holding steady in the 93.00 to 93.25 area consolidating yesterday’s bullish reversal and bounce up off 92.00. RSI back above 30 confirms a trading bounce underway. Next resistance possible near 93.65 a recent breakdown point.

EURUSD is sitting on $1.1500 trading between $1.1470 and $1.1510 after a big spike up toward $1.1600 Tuesday faltered. RSI near overbought suggests recent rally may be reaching its limits for now and a pause or correction possible.

NZDUSD has dropped back from $0.6920 toward a test of $0.6870 with next support after that at the 50-day average near $0.6800. So far its rising channel remains intact but if that uptrend breaks or RSI takes out 50 a new downtrend could emerge.

AUDUSD is breaking down, taking out $0.7500 round number support and falling toward trend support $0.7450 having already broken the 50-day average earlier this week. Next downside test near $0.7390 a former resistance level.

USDCNH is starting to move upward again clearing 6.5000 and advancing on 6.5180 with next resistance near 6.5285 the top of a channel and Fibonacci test. RSI above 50 and at a new high on trend indicates upward momentum increasing.

USDSGD continues its rebound, advancing toward the top of a $1.3400 to $1.3600 base building range while RSI regaining 50 confirms momentum turning back upward. Next potential resistance at prior highs near $1.4660 then $1.4740.

USDJPY has peeked back above 107.00 as it continues to bounce up off 105.45 support. A positive RSI divergence suggests potential for a trend change. Next upside resistance possible near 108.20 a recent daily high.

EURJPY continues to climb up out of a double bottom near 121.50 regaining 123.00 with next potential resistance near 124.90 and the 50-day average. RSI rising toward 50 indicates downward momentum fading.

CADJPY continues to drop falling away from 84.50 to2ard 83.10 with next potential support near 82.45 then 81.75. RSI under 50 and falling confirms downward pressure increasing.

USDCAD has spiked upward to signal the start of a significant upward correction, confirmed by RSI clearing 50. The pair has moved up into the $1.2850 to $1.2890 area with next potential resistance near $1.3000 around a round number, 50-day MA and Fibonacci test.

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