It’s been another risk on day for the markets with US indices charging to new highs and pulling other markets along for the ride. GBP bounces back after the Bank of England decided not to cut interest rates. Capital continues to flow out of defensive havens particularly gold and JPY which has turned downward against USD, CAD, EUR and GBP.
Asia Pacific Indices
Australia 200 continues to climb, advancing on 5,450 with support moving up toward 5,425 from 5,385. RSI confirms upward momentum still increasing. Next potential resistance near 5,485 a Fibonacci level then 5,550.
Japan 225 is rallying up off a successful retest of its 50-day average near driving up toward a test of 16,675 before dropping back to retest higher support near the 16,500 round number. RSI indicates underlying accumulation intact.
Hong Kong 50 broke out to the upside yesterday, clearing 21,500 and advancing on 21,690 with next potential resistance near 21,725, its 2016 high set in April. Rising RSI confirms upward momentum increasing.
North American and European Indices
US 30 is breaking out today, blasting through 18,360 to a new all-time high and driving on into the 18,480 to 18,560 zone. RSI rallying following a downtrend break confirms upward momentum accelerating.
US NDAQ 100 is retesting 4,600 channel resistance where a breakout would signal the start of a new upleg which could challenge resistance in the 4,700 to 4,740 one near the November high. RSI confirms underlying accumulation increasing.
US SPX 500 continues to climb to new heights, clearing 2,150 and advancing on 2,170 with next measured tests possible near 2,190 then 2,270. RSI confirms upward momentum still increasing.
UK 100 is coming off a bearish reversal and possible shooting star where it dropped back toward a retest of 6,650 support after encountering resistance near 6,740. RSI suggests upward momentum levelling off as the index pauses to digest recent gains.
Germany 30 has broken through and successfully retested 10,000, a sign of accumulation with the index advancing on 10,090 and its 50-day average with next potential resistance near 10,125 then 10,355 on trend. Rising RSI confirms upward momentum increasing.
Gold has resumed its downward correction, falling from near $1,345 toward $1,325 before rebounding toward $1,333. Next potential downside support near $1,300 then $1,285 where a Fibonacci cluster and the 50-day average converge. RSI falling toward 50 suggests a downturn in momentum pending.
Crude Oil WTI held $45.00 round number support and Fibonacci support near $44.80, bouncing back up toward the $45.40 to $45.80 area before levelling off again with next potential resistance near $46.80. RSI flattening out near 40 suggests downward pressure easing.
US Dollar Index is starting to roll over, slumping back under 96.00 while the RSI nearing 50 suggests a downturn in momentum pending. Next potential support near 95.55 then 95.00.
EURUSD has cleared $1.1100 and its 200-day average advancing on $1.1160, well into the upper half of its $1.1000 to $1.1200 trading range with next resistance at its 50-day average near $1.1215. RSI testing 50 where a breakout would signal an upturn in momentum.
GBPUSD popped up from near $1.3200 toward $1.3475 but has been backing and filling lately with higher lows between $1.3315 and $1.3400 forming a bullish ascending triangle. Daily chart RSI gaining on 50 indicates downward pressure fading fast.
NZDUSD is starting to roll over, falling back from $0.7300 resistance toward $0.7195 a Fibonacci level with next potential support near $0.7165. RSI still holding 50 suggests this may be a trading correction within an uptrend.
AUDUSD remains under accumulation, advancing up off a higher low near $0.7600 toward $0.7650 with next potential resistance on trend near $0.7730 then $0.7830 the April 2016 peak. Rising RSI confirms upward momentum accelerating.
USDSGD is probing the bottom of its $1./3400 to $1.3600 trading range with resistance falling toward $1.3435. RSI falling away from 50 confirms downward momentum increasing with next potential support near $1.3340.
USDJPY is breaking out today! Pair cleared resistance in the 105.00 to 105.15 zone and advanced on 105.90 before dropping back for a retest holding near 105.30. Next potential resistance appears at its 50-day average near 106.30 then a previous high near 106.75. RSI clearing 50 confirms momentum upturn.
GBPJPY is breaking out today clearing the 140.00 round number and advancing on 141.40 before dropping back for a successful retest. Next potential resistance looks possible near 142.20 then 144.20 on trend. Support rises toward 140.50 a 38% retracement of the June selloff.
EURJPY continues to rally, driving up off a successful test of 115.00 as round number support and advancing on 117.30 with next potential resistance at the 50-day average near 119.20. RSI regaining 50 confirms momentum turning upward.
CADJPY continues to recover, driving up from a successful test of 80.00 as higher round number and Fibonacci support and advancing on 81.70 with next potential resistance at the 50-day average near 82.15 then 82.65 a Fibonacci level. RSI regaining 50 confirms an upturn in momentum.
USDCAD is turning downward again breaking its 50-day moving average on its way down from near $1.3000 toward $1.2880 with next potential support near $1.2850 then $1.2700. RSI falling under 50 and resistance falling toward $1.2920 confirm the start of a new downswing.