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Chart Signals - Thursday, Jan 7

Chart Signals - Thursday, Jan 7

Asia Pacific Indices

Australia 200 is bouncing around between 5,080 and 5,140 but RSI breaking under 50 suggests this could be a pause within an emerging downtrend with next potential support near 5,070 a Fibonacci test then the 5,000 round number.

Japan 225 is getting pounded today, taking out the 18,000 round number and falling toward 17,940 with next potential downside support near 17,865 a former resistance level. RSI indicates downward momentum increasing.

Hong Kong 43 broke down yesterday, taking out the 21,000 round number which may become new resistance. The index has fallen into the 20,660 to 20,780 zone with next support possible near 20,500 then 20,375. RSI nearing oversold but no signs of a bounce have emerged yet.

India 50 failed to retake 7,800 setting a lower high and has turned downward once again dropping toward 7,710 with next support possible in the 7,680 or 7,600. RSI confirms downward pressure growing.

North American and European Indices

US 30 is breaking down today, taking out the 17,000 round number and falling into the 16,910 to 16,970 area with a diving RSI confirming increased downward pressure. Next potential support near 16,835 a 50% retracement level.

US NDAQ 100 has shrugged off early weakness bouncing up off of 4,400 toward the 4,440 to 4,470 area. The 200-day average being retested as new resistance and falling RSI suggests broader downward momentum remains intact and a test of 4,310 possible on a breakdown.

US SPX 500 is breaking down today, taking out the 2,000 round number to signal a new downleg underway with next potential support near 1,990 then 1,975 and 1,940 the latter two near Fibonacci tests.

Germany 30 is retesting its December low near 10,110. Although it appears to be stabilizing in the 10,160 to 10,230 range, RSI indicates growing downward momentum indicting a retest of 10,045 a Fibonacci level or even 10,000 remains possible.

UK 100 has resumed its downtrend, falling from near 6,130 toward 6,020 before stabilizing in the 6,050 to 6,080 area. RSI confirms downward momentum accelerating keeping open the potential for a retest of the 6,000 round number.

Commodities

Gold is breaking out of a head and shoulders base today clearing the $1,086 neckline that may become new support. . RSI has already cleared 50 to signal momentum turning upward. Next potential resistance near $1,100 then a measured $1,126.

Crude Oil WTI is breaking down today, taking out $34.00 to signal a new downleg stating and falling into the $33.20 to $33.50 area with next potential support near $32.50 on trend.

Crude Oil Brent is breaking down today, taking out the $35.00 round number to confirm the start of a new downleg with next potential support in the $33.00 to $34.00 range a support/resistance area dating back to the 2002-2004 time frame.

FX

US Dollar Index has paused near 99.50 still below the 100.00 round number hurdle. RSI also suggests uptrend levelling off for now. If it does manage to break out, next resistance may appear near a measured 101.60. Support in place near 99.20 then 99.00.

EURUSD has bounced up from $1.0720 toward  a retest of $1.0800, yesterday’s breakdown point which has been confirmed as new resistance . This signals a new downleg underway with next potential support near $1.0665 then $1.0555.

NZDUSD is breaking down today, taking out its 50-day moving average and trend support near $0.6666 to signal the start of a new downtrend. Currently trading near $0.6630 with next potential support near $0.6600 then $0.6575. RSI breaking under 50 confirms the downturn.

AUDUSD is breaking down today taking out trend support near $0.7100, which has become resistance, to signal a new downtrend and then falling into the $0.7050 to $0.7075 area with next potential support near the $0.7000 round number and then $0.6900. RSI confirms downward pressure increasing.

USDCNH has levelled off near 6.7000 having run into resistance near 6.7300. RSI is getting really overbought so it may need to consolidate in the near term to digest recent gains.

USDJPY continues to drop, taking out 119.00 and sliding into the 118.40 to 118.70 range. RSI getting oversold so a near term pause possible within an ongoing downtrend. Next potential downside support near 118.10 on trend.

EURJPY is falling again taking out 128.00 and retesting it as new lower resistance with next potential support near 127.20 then the April low near 126.00. RSI oversold so a pause or trading bounce possible at some point.

CADJPY is testing 84.00 as support with resistance falling toward 84.50. RSI really oversold so it could bounce at some point but no sign of an upturn yet.

USDSGD is breaking out today, clearing $1.4360 to signal the start of a new upleg with next potential resistance near the $1.4500 round number then a measured $1.4625. RSI nearing overbought suggests a retest of the breakout point possible.


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