European markets started the day strong but have gone into retreat, a sign recent rallies may be exhausted and corrections starting. Meanwhile resource currencies like CAD and AUD continue to struggle.
Asia Pacific Indices
Australia 200 appears to have formed a double top, trading below 5,965 resistance and 5,900, but at the same time its underlying uptrend appears to still be intact trading above support in the 5,820 to 5,835 area where its 50-day average and a previous breakout point cluster.
Japan 225 is breaking out today, blasting through 19,695 the top of a former trading channel and soaring up into the 19,850 to 19,920 zone with next potential resistance at the 20,000 round number. RSI getting overbought but confirming upward momentum for now.
Hong Kong 50 is sending mixed signals. The index appears to be forming a double top below 24,765 recently trading between 24,500 and 24,620 having bounced up from 24,320 support.
North American and European Indices
US 30 is bouncing around 21,000 trading between 20,920 and 21,070. RSI flattening out at a lower high indicates upwards momentum weakening. Next support possible near 20,860. Double top resistance near 21,130.
US SPX 500 is attempting to break out today clearing and the retesting 2,400 having traded up toward 2,408. It remains to be seen if this is the start of a new upleg or a buying climax. Next measured resistance possible near 2,420 then 2,475 with next support near 2.320 then 2,325.
US NDAQ 100 has slipped back slightly after reaching a new high near 5,665 in early trading. RSI overbought and levelling off indicates upward momentum fading and a pause or correction possible. Next measured resistance possible near 5,690 with next support near 5,610.
UK 100 is hanging around 7,300 trading between 7,290 and 7,330. Holding above 7,260 appears to be calling off a recent head and shoulders top. RSI holding 50 and rising indicates momentum turning back upward following a selloff.
Germany 30 has a bearish key reversal day underway. The price peeked up to a new high near 12,870 but has since been slammed back down under 12,700 with next potential support tests ear 12,600 then 12,500. RSI back under 70 signals upward momentum fading and a pullback starting.
France 40 has turned back downward giving back nearly all of Friday’s gains as it drops back from 5,475 toward 5,385. RSI rolling back under 70 from overbought signals a correction starting. Next potential support near 5,360 then 5,285 23% and 38% retracements if the recent election rally.
Commodities
Gold’s big selloff has been contained for now by $1,220 Fibonacci support. RSI turning back upward indicates downward pressure easing for now. Initial resistance has emerged near $1,236 with more possible near $1,242. Recent trading near $1,227.
Crude Oil WTI ran into resistance near $46.70 and has dropped back toward $46.20 in what looks like normal backing and filling following Friday’s big bullish reversal. The price remains well above $45.00 support. RSI still oversold, indicates potential for a trading rebound.
FX
US Dollar Index has bounced up off of 98.30 support but hasn’t been able to get very far still stuck below 99.00 with additional resistance possible near 99.25. RSI steady near 40 suggests a consolidation phase underway within a bigger downtrend.
EURUSD failed to break through $1.1000, confirming round number resistance. The pair has been selling off since then, while RSI has also turned downward. The pair has dropped back under $1.0950 to test $1.0930 with next potential support near $1.0890 both Fibonacci levels.
GBPUSD continues to encounter resistance at the $1.3000 round number while RSI suggests upward momentum levelling off into a consolidation phase. It’s underlying uptrend remains intact through this pause above potential support near $1.2940, $1.2900 and $1.2830.
NZDUSD still appears to be base building between $0.6850 and $0.6950 recently trading near $0.6915. RSI suggests downward pressure easing but it needs to retake 50 plus $0.7000 for the pair to call off the current downtrend
AUDUSD remains under distribution with the pair still stuck below $0.7430 resistance and falling toward a test of $0.7390 a Fibonacci level with next potential support near $0.7365 then $0.7330. Falling RSI confirms downward pressure increasing.
USDSGD is building on last week’s breakout to the upside over $1.4000 and its 50-day average trading in the $1.4030 to $1.4070 range. RSI above 50 and rising confirms upward momentum accelerating with next potential resistance near $1.4085 a Fibonacci level then $1.4155.
USDJPY is still bouncing around between 112.15 and 113.00 with RSI confirming momentum levelling off. So far this appears to be a pause within an uptrend with next potential resistance near 113.35 a Fibonacci level then 114.15 with next support at the 50-day average near 111.65.
GBPJPY ran into resistance near 146.60 and has slipped back toward 145.70 with more support possible near 145.00 then 144.10 a 23% retracement of the recent rally. RSI extremely overbought suggests pair at risk of a correction.
EURJPY has a bearish reversal underway with the pair peeking up above 124.00 briefly then plunging form 124.55 down toward 123.55 with next potential support near 122.00. Overbought RSI suggests potential for a correction.
USDCAD is having an inside day consolidating between $1.3640 and $1.3710 after diving down from $1.3800 on Friday. RSI back under 70 after being really overbought signals a correction starting. Next potential support near $1.3590 a previous breakout point.
