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Chart Signals - US Dollar weakens; JPY fails to sell off and stock rally loses steam

Asia Pacific Indices

Australia 200 has broken out of a short downswing popping back up through 5,185 and driving on into the 5,265 to 5,285 area with next resistance near 5,335 a Fibonacci level. RSI testing 50 where a breakout would confirm an upturn. 

Japan 225 is falling back after failing to hold above the 16,000 round number or 16,055 a Fibonacci level. Trading back near 15,900 with resistance falling toward 15,950 next correction support appears possible near 15,825.

Hong Kong 50 has entered a Fibonacci cluster in the 20,757 to 20,705 range, trading near 20,650. RSI back above 50 indicates upward momentum accelerating but if it falters 20,500 or 20,210 could be tested in a correction. Next upside resistance near 20,890 on a breakout.

North American and European Indices

US 30 has turned upward again, regaining its 50-day average near 17,790 and 50 on the RSI. Recently trading in the 17,840 to 17,890 zone after a rally faltered near 17,950 with next resistance possible near 18,000.

US NDAQ 100 has popped back up above 4,400 into the upper half of a 4,360 to 4,440 range with next potential resistance near 4,500 a Fibonacci and round number test. RSI indicates downward pressure weakening.

US SPX 500 is taking another run at 2,100 after retaking its 50-day average near 2,080 overnight but failed to get through on the first try. RSI back above 50 confirms the upturn while support rises toward 2,090.  Next upside resistance near 2,112 on a breakout.

UK 100 gapped up from 6,060 toward 6,120 and more recently has been trading sideways in the 6,140 to 6,240 range around its 50 and 200-day averages. RSI back above 50 confirms an upturn underway with next resistance near 6,300.

Germany 30 gapped up from 9,700 to 9,900 to start the week but the rally appears to be getting contained near 10,000 where the extension of a broken support line, the 50-day average and a big round number all converge. The index has dropped back toward 9,960. RSI testing 50 where a breakout would confirm an upturn but a failure would confirm a downtrend. 



Gold continues to pause near $1,289 where it has rebounded toward after confirming support near $1,277 earlier in the day. RSI suggests upward momentum levelling off. Next resistance near $1.300-$1.305 with next support near $1,264.

Crude Oil WTI is building on Friday’s big bounce off its 50-day average, trading above $48.10 Fibonacci support and advancing into the $48.80 to $49.30 area with next resistance near the $50.00 round number. RSI confirms momentum turning upward again.



US Dollar Index is under pressure again, with a breakaway gap down from 94.30 to 94.00 signalling a downturn. The index has dropped in the 93.75 to 95.55 area with next potential support near 93.35 then a measured 92.00.

EURUSD took a run at $1.1400 channel resistance but failed to get through slumping back toward $1.1320 from $1.1380 with support possible at the 50-day average near $1.1300. RSI back above 50 and trending higher indicates upward momentum still building. Next resistance on a breakout possible near $1.1500 with next downside support near $1.1200.

GBPUSD is testing the top of its $1.4000 to $1.4700 trading channel and approaching its 200-day average recently trading between $1.4600 and $1.4670. Next resistance possible at the May high near $1.4770. More support near $1.4450 the top of a gap and the 50-day average.  

NZDUSD is back above $0.7100 testing $0.7145 resistance which could end in a breakout or a double top. RSI near overbought suggests it may need to digest recent gains. Correction support near $0.7045 then the $0.7000 round number. Next resistance near $0.7195 a Fibonacci test.

AUDUSD is consolidating recent gains in the $0.7440 to $0.7480 just below $0.7500 round number resistance. Next test after that near $0.7600. RSI climbing up off 50 confirms upward momentum increasing.

USDSGD continues to retreat falling away from $1.3500 back toward the $1.3420 to $13450 area with next potential support near $1.3400 then $1.3355 the recent low.

USDJPY has started to turn back downward again with a rally faltering near 104.60 well short of 105.00 round number or 105.30 breakdown point resistance. RSI still oversold so a bounce possible but so far no traction. Back under 104.00 next support appears near 103.45.

GBPJPY is clearly turning upward, building on last week’s big hammer candle with a breakaway gap up through 150.00 and 151.50 rallying on into the 152.50 to 153.50 area with net potential resistance near the 155.00 round number then the 50-day average near 156.80.

EURJPY has resumed its downtrend having faltered at a lower high near 119.00 and diving back down toward 117.50 even though RSI remains oversold. Next potential support near 117.00 then the recent low near 115.35.

CADJPY took a run at 81.80 but has turned south again after faltering at a lower high well short of 82.45 Fibonacci resistance. Recently near 81.10 next support near the 80.00 round number.


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