US indices finished the trading week strong along with 24 hours trading in the Australia 200, setting the stage for a potential catch up rally in indices to start the week. Heading into the weekend USD had bounced back a bit putting a cap on recent gains made by AUD, NZD and SGD. A rebound in JPY had ripped the rug out from under Japan 225, it’s hard to say if this may continue or reverse course.
Asia Pacific indices
Australia 200 dipped below 5,000 briefly but then bounced back, rallying up from 4,970 support back up toward 5,020. Next upside resistance possible on a bounce near 5,100 then 5,145.
Hong Kong 50 remains in an uptrend having taken all the bears could throw at it and still holding a higher low near 20,300 then rallying back above 20,500 with next resistance near 20,815 then 21,000.
India 50 is still struggling and appears to be running out of gas near 7,750 having dropped back into the 7,660 to 7,710 zone. RSI confirms momentum shifting from upward to sideways for a rest after a big rally up out of a double bottom.
Japan 225 went off a cliff Friday breaking its 50-day average near 16,650 as it fell from near 16,.815 Fibonacci resistance down toward the 16,130 to 16,210 area with next potential support near 16,055 then 16,000. RSI diving under 50 confirms downward pressure increasing.
North American and European Indices
US 30 remains overbought on the RSI but well supported as the index held 17,570 support and bounced back up through 17,610 an on toward 17,770 with next potential upside resistance near 17,825 then 17,925.
US NDAQ 100 is breaking out to the upside, clearing 4,500 a round number and Fibonacci level then advancing on 4,520 with next resistance possible near 4,590 on trend. RSI getting overbought suggests a pause possible sometime soon.
US SPX 500 is bouncing around 2,060 rallying up from 2,045 toward 2,070 but with RSI overbought ti could struggle to make headway beyond 2,080 or 2,100 resistance in the near term.
UK 100 continues to struggle with resistance at its 50-day average near 6,250 falling from near 6,140 toward 6,080 but still holding above 6,000 where a round number and the 50-day average cluster. RSI falling under 50, however, indicates momentum turning downward.
Germany 30 is falling away from 10,000 again dropping back from near 9,935 toward 9,700 before bouncing back toward 9,800. Resistance falls toward 9,820 with next potential support near 9,620. A breakout attempt has failed with RSI falling back under 50 suggesting a downturn starting.
Gold has been knocked back again, taking out $1,228 as it falls from near $1,236 down toward $1,210 before finding support and bouncing back toward $1,220. RSI falling under 50 confirms momentum turning downward with next support possible near $1,200.
Crude Oil WTI continues to retreat as its correction deepens. RSI breaking under 50 signals momentum turning back downward as the price falls from near $37.50 toward $36.90 with next potential support between the $35.00 round number and $35.35 a Fibonacci level.
US Dollar Index has stabilized near 94.50 between 94.30 and 95.00. RSI indicates continued downward pressure with next potential support on a breakdown near a measured 93.60, and next resistance near 95.25 then 95.40.
EURUSD continues to climb, driving up from a higher low near $1.1365 on toward $1.1420 with next resistance possible near $1.1500 a round number and October high. RSI nearing overbought but confirms upward momentum still increasing for now.
EURGBP has broken out to the upside, clearing 0.7930 to complete an ascending triangle and driving on through 0.8000 with next resistance near 80.70 then 81.40 on trend. RSI breaking out of a downtrend confirms momentum upturn.
NZDUSD has levelled off near $0.6900 short of its recent high near $0.6965 and the $0.7000 round number which could raise the ire of the RBNZ. Support continues to rise this time toward $0.6840 indicating continued underlying accumulation.
AUDUSD continues to struggle with $0.7700 resistance settling into the $0.7670 to $0.7690 area holding above $0.7600 support. RSI indicates a sideways pause underway within an ongoing uptrend.
USDCNH completed a double bottom with a successful retest of 6.4565 support and has bounced back up toward 6.4800 with next potential resistance near 6.5000 then 6.5285. Higher lows in the RSI indicate downward pressure easing.
USDJPY continues to retreat within the lower half of its 111.00 to 115.00 trading range falling from near 112.55 toward 111.60. RSI falling away from 50 indicates broader downtrend resuming with next potential support on a breakdown near the 110.00 round number.
EURJPY encountered resistance near 128.00 and has dropped back toward 127.10 but it remains above its 50-day average near 126.90 suggesting this may be a common correction within an uptrend.
CADJPY failed to hold above 82.00 and has been knocked back down under 86.20 toward 85.70 with next potential support near 85.00 then 84.55.
USDSGD continues to bounce up off of $1.3400 toward $1.3500 with next upside resistance possible near $1.3555 then $1.3590. A positive RSI divergence indicates downward pressure weakening although there’s stilla lot of work to do to call off the current downtrend.
USDCAD continues to rebound building on yesterday’s big bear trap reversal and double bottom. $1.3000 has become support again as the pair rallied to test $1.3150 before falling back toward $1.3030.