Despite overbought signals from RSI indicators, US indices rallied to new all-time highs again today. The Australia 200 and Japan 225 indices, meanwhile, are approaching significant resistance tests. In currency action, GBP and CAD have been the top performers with AUD, NZD and SGD all struggling. Copper is breaking out of an ascending triangle today which could attract interest to the base metal sector.
Asia Pacific Indices
Australia 200 continues to climb, taking a run at the top of its 5,600 to 5,800 trading range. Rising RSI indicates upward momentum increasing. Support rises toward 5,760. Next potential resistance on a breakout near 6,000 where a round number and measured move converge.
Japan 225 has regained 19,500 in the current upswing but is now approaching its previous high near 19,585 which it needs to clear to signal stronger accumulation. RSI rising up off 50 indicates momentum is turning increasingly upward. Next potential resistance near 19,750 then the 20,000 round number.
Hong Kong 50 is still trending upward, with support rising toward 23,585 and the index advancing on 23,740 with next potential resistance near 23,865 then 24,000. RSI getting overbought so it may need to pause for a rest at some point.
North American and European Indices
US 30 has reached another new all-time high, blasting through 20,350 and rallying toward the 20,420 to 20,440 area with next potential resistance near the 20,500 round number. RSI overbought while a negative divergence refuses to confirm recent new highs but so far that doesn’t appear to be stopping the market’s drive higher.
US SPX 500 has reached another new high near 2,328 with next potential measured resistance on trend near 2,335. Support moves up toward 2,318 from 2,312. RSI confirms upward momentum increasing but starting to get overbought again.
US NDAQ 100 has touched a new high trading up toward 5,265 with 5,250 a measured potential objective becoming initial support. RSI is really overbought and forming a double top suggesting a correction possible with initial support near 5,225 then 5,200.
UK 100 remains in an uptrend but has paused for a rest near 7,280 after trading up toward 7,300 with next potential resistance near 7,365. Support rises toward 7,255 from 7,200.
Germany 30 continues to climb within a 11,445 to 11,900 trading range, driving up from 11,670 toward 11,785 with next potential resistance near 11,845. RSI rallying up off 50 confirms upward momentum increasing.
Gold is bouncing around $1,229 a Fibonacci level trading between $1,224 and $1,232 as it continues to consolidate recent gains in the $1,218 to $1,242 range. A double top in the RSI suggests upward momentum has likely peaked for now, but RSI well above 50 suggests no downturn in sight yet either.
Crude Oil WTI tried to break out over $53.85 but channel resistance held and the price was knocked back down toward $52.65 with next support at the 50-day average near $52.00. RSI bouncing around between 40 and 60 indicates a primary sideways trend.
Copper is breaking out today, clearing $2.72 to complete a bullish ascending triangle and advancing on $2.82 before retrenching back to $2.78. Next potential resistance near a measured $2.87 then $2.93 a Fibonacci level. Rising RSI confirms upward momentum accelerating.
US Dollar Index is still forming a saucer bottom below 101.00 but at the same time is really struggling to get through that resistance level. A breakout there or of 50 on the RSI would signal a new uptrend with next potential resistance near 101.30 then 101.70. A failure, however, would signal an emerging downtrend with potential support near 100.50 then 100.00.
EURUSD remains under distribution with $1.0640 a Fibonacci level emerging as lower resistance following a breakdown. RSI breaking under 50 confirms momentum turning downward with next potential support near $1.0585 close to a Fibonacci level and the 50-day average then the $1.0500 round number.
GBPUSD remains under accumulation regaining $1.2500 up from $1.2435 and trading toward $1.2525 with next potential resistance near $1.2545 then $1.2585. RSI holding 50 confirms underlying uptrend remains intact.
NZDUSD has resumed its downtrend following a one-day pause with a bearish engulfing day. RSI breaking under 50 confirms a downturn underway. The pair has dropped from $0.7215 toward $0.7155 with next potential support in the $0.7100 to $0.7120 area where the 50 and 200-day averages congregate.
AUDUSD is still struggling with $0.7700 resistance with more possible near $0.7725. The pair is holding above $0.7600 with higher lows indicating continued underlying support. RSI steady just below 70 suggests a pause underway within an uptrend.
USDSGD keeps trending upward with $1.4200 where it broke out of a saucer bottom becoming new support and the pair testing $1.4260 a Fibonacci level. RSI peeking above 50 suggests momentum turning upward. Next potential resistance at the 50-day average near $1.4300.
USDJPY is at a technical turning point. Downtrends in the pair and the RSI have been broken but tests underway of 114.05 and 50 respectively may indicate if we are moving into a sideways trend or a new uptrend. Next potential resistance at the 50-day average near 115.00 with next support near 113.00. So far resistance has been holding with the pair slumping back toward 113.55.
GBPJPY remains under accumulation, clearing 142.25 Fibonacci resistance and advancing on its 50-day average near 143.00 with next potential resistance after that near the 145.00 round number and a previous peak. RSI breaking out over 50 confirms momentum turning upward.
EURJPY is increasingly trending downward with 121.00 a broken support level emerging as lower resistance. The pair has dropped toward the 120.40 to 120.70 area with next potential support near the 120.00 round number then 119.05 a Fibonacci test. RSI under 50 and falling confirms momentum turning increasingly downward.
USDCAD is still in a downtrend below its 200-day average near $1.3145 with the pair dropping from a lower high near $1.3120 toward $1.3050 over the last few hours. RSI holding below 50 indicates ongoing distribution. Next potential support near $1.3045 then $1.3000 with next resistance near $1.3200.