The US Dollar Index built on a Morning Star by breaking out of a base today. This move sent other currencies downward including JPY, gold, AUD, CAD, EUR and GBP. Meanwhile, copper is back under $3.00 and sinking while WTI crude oil appears to be taking another run at $50.00.
Asia Pacific Indices
Australia 200 continues to struggle with channel top resistance at 5,800 and has dropped form 5,780 back toward its 50 and 200-day averages near 5,740.Next support in a pullback possible near 5,700.
Japan 225 remains in an uptrend following a successful retest of 19,795 a Fibonacci level, 50-day average and a recent breakout point. The index has encountered resistance near 19,900 with more possible near the 20,000 round number.
Hong Kong 50 appears to be rolling over, falling back under 28,000 toward 27,810. RSI falling from a lower high confirms upward momentum downshifting into neutral. Next support appears near 27,480 a 32% retracement of the previous uptrend.
North American and European Indices
US 30’s latest rally has stopped near 22,135, just short of its previous peak near 22,200, potentially setting up a double top. RSI is rolling over at a lower high than at the August peak a sign of slowing upward momentum. The index remains in an uptrend above 22,000.
US SPX 500 is bumping up against 2,500 round number resistance having cleared 2,492 to reach a new all-time high. It remains to be seen if this is a throwover buying climax or the start of a new upleg although RSI remains supportive. Initial pullback support near 2,490 and 2,482 with next measured resistance near 2,535.
US NDAQ 100 failed to break through 6,000 and may be in the process of completing a double top. The index has dropped back toward 5,994 with next potential support in a correction near 5,977 then 5,968. RSI holding 50 suggests a consolidation phase underway within an ongoing uptrend.
UK 100 remains stuck in a sideways channel between 7,300 and 7,500. The index ran into resistance at its 50-day average near 7,415 and has dropped back toward 7,380.
Germany 30 has paused between 12,500 and 12,550 to consolidate its recent breakout over 12,300. RSI still rising confirms underlying upward momentum intact through this consolidation phase. Next potential resistance near 12,580 and 12,600 with next support near 12,355.
Gold remains under pressure, retesting $1,322 a 23% Fibonacci retracement of its previous uptrend after a rebound attempt failed at a lower high near $1.336. RSI continues to fall away from 70 indicating a deepening correction. Next potential support near $1,310 then $1,300 where a round number and 38% retracement converge.
WTI crude oil continues to rally up off a successful test of its 50-day average near $47.50. Support has moved up toward $48.30 with the price advancing on $49.25 and a test of its 200-day average. RSI holding 50 confirms the underlying uptrend remains intact. Next potential resistance at the $50.00 round number.
Copper continues to retreat with the price breaking $3.00 and the RSI breaking under 50 signalling momentum turning increasingly downward. Next potential support near $2.93 a Fibonacci level then the 200-day average near $2.90.
US Dollar Index is breaking out of a downtrend and out of a base today, building on a Morning Star pattern by clearing 92.00 to signal the start of a new uptrend. The index has advanced on 92.45 with next potential resistance near 93.00 then 93.35 the 50-day average.
EURUSD continues to retreat, coming off a Bearish Engulfing day that saw it fail to retake $1.2000 then plunge down under $1.1900 toward $1.1880. Next support possible near $1.835 then the 50-day average near $1.1740. RSI falling toward 50 indicates confirmation of a downturn pending.
GBPUSD peeked above $1.3300 briefly and has slumped back from $1.3320 toward $1.3200 in what looks like a steep but normal trading correction of an overbought RSI, particularly with the RSI falling back under 70. Next support possible near $1.3150 a Fibonacci level and recent breakout point.
NZDUSD is sending mixed signals. The pair failed to regain $0.7300 and 50 on the RSI and has been knocked back toward $0.7230. On the other hand, the pair remains in an uptrend above $0.7225 with more support possible near $0.7190.
AUDUSD is breaking down today, taking out the $0.8000 round number and falling toward $0.7985. RSI falling toward 50 confirms upward momentum fading and a downturn pending. Next potential support near $0.7900 and the 50-day average.
USDSGD continues to rebound with support rising toward $1.3450 and the pair taking a run at $1.3500. RSI rising toward 50 indicates downward pressure easing and confirmation of an upturn pending. Next potential resistance near $1.3600 and the 50-day average.
USDJPY is breaking out of a downtrend today, rallying up off of 110.00, clearing 110.35 and advancing on 110.70. RSI regaining 50 confirms momentum turning upward. Next potential resistance near 111.00 then 111.75.
GBPJPY spiked up toward 146.75 before backsliding toward 145.90 in what looks like normal backing and filling. The pair remains in an uptrend above its 145.00 breakout point with next resistance near 147.55.
EURJPY continues to bump up against 131.85 resistance. Signals are mixed with an ascending triangle indicating accumulation but a failure to break out and a lower high in the RSI indicating distribution, Next measured resistance on a breakout possible near 134.70, next support near 131.00 then 130.00 in a pullback.
USDCAD appears to be forming a rounded bottom testing the top of a $1.2035 to $1.2200 range. A positive RSI divergence and RSI trading back above 30 indicates downward pressure easing along with oversold conditions. Next resistance on a breakout possible near $1.2325.