A huge trading day is underway in currency markets with Sterling exploding out of a double bottom to the upside on Brexit news. Meanwhile, Donald Trump’s comments on the high US Dollar have sent it hurtling downward as its recent rally finally collapses under its own weight. This has ignited major breakouts for a number of major currencies, particularly AUD clearing the $0.7500 round number.
Asia Pacific Indices
Australia 200 continues to roll over, breaking down below 5,700 and sliding toward 5,690 with next potential support near 5,650 then 5,600 while resistance falls toward 5,750. RSI falling toward 50 indicates a correction deepening and a downturn pending.
Japan 225 is breaking down today, taking out the 19,000 round number and diving down toward 18,676 before bouncing back up into a range between its 50-day average near 18,730 and 18,860. RSI breaking under 50 confirms momentum turning downward.
Hong Kong 50 is still struggling with the 23,000 round number trading between 22,880 and 22,930. It remains in an upswing above 22,755 with more support possible at its 50-day average near 22,435.
North American and European Indices
US 30 bounced up from near 19,800 toward 19,880 but remains unable to shake off a series of lower highs and remains way short of the big 20,000 barrier. RSI falling toward 50 indicates upward momentum still fading. Next potential support near 19,750 then 19,700 channel floor.
US SPX 500 continues to struggle with 2,282 resistance trading between 2,262 and 2,272. A head and shoulders top forming in the RSI indicates upward momentum has peaked and downturn potential growing. Next potential support at the 50-day average near 2,228.
US NDAQ 100 is starting to roll over having peaked recently near 5,070. The index bounced up off 5,034 earlier today but has faltered at a lower high near 5,054 and appears to be retreating again falling back toward 4,042. RSI rolling over indicates upward momentum peaking. Next support possible near the 5,000 round number.
UK 100 has turned downward over the last few hours falling from near 7,320 toward 7,230 while resistance drops toward 7,250. RSI remains overbought but rolling over suggests a correction may be starting with next potential support near 7,170 a 23% Fibonacci retracement of its recent advance.
Germany 30 successfully tested 11,445 breakout point support and has rebounded up through 11,500 and on toward 11,580. It remains in a downtrend of lower highs and RSI continues to fall suggesting distribution continues through this trading bounce.
Gold is breaking out again today, driving up off $1,203 toward $1,219 then establishing support at a higher level near $1,211 a Fibonacci test in normal backing and filling. Rising RSI confirms upward momentum still increasing. Next potential resistance near $1,230 a 50% retracement of the post-election selloff.
Crude Oil WTI is still bouncing around and active within a $50.30 to $54.20 trading range. WTI did a round trip between $52.20 and $53.20 Tuesday. RSI holding 50 indicates sideways to slightly upward momentum. Next resistance possible near $53.70 with next support near $51.75.
US Dollar Index is accelerating downward, falling from near 101.55 toward 100.30 with falling RSI confirming downward pressure increasing. Resistance has dropped toward 100.75 with next downside tests near 100.00 then 99.75 and 99.35.
EURUSD is breaking out today driving up off $1.0585 a Fibonacci level toward $1.0720 Fibonacci resistance with support later rising toward $1.0700 and next resistance near $1.0830 a Fibonacci cluster. Rising RSI confirms upward momentum accelerating.
GBPUSD is soaring today confirming Monday’s double bottom retest of $1.2000 by driving up off $1.2100 toward $1.2400 and a test of its 50-day average. RSI retaking 50 confirms the start of a new uptrend. Support rises toward $1.2370 next potential resistance at the $1.2500 round number.
NZDUSD is breaking out of a downtrend today, clearing $0.7125 which may become support and advancing on $0.7210 with next potential resistance near $0.7245 then $0.73045. Rising RSI confirms upward momentum increasing.
AUDUSD is breaking out today, clearing the $0.7500 round number which may become support and advancing on $0.7565 with next potential resistance near $0.7590 then the $0.7675 to $0.7725 area. Rising RSI confirms uptrend accelerating, but nearing overbought suggests it could need a rest stop.
USDSGD is breaking down today, taking out $1.4200 to signal the start of a new downleg and falling toward $1.4155. Next potential support near $1.4085 a Fibonacci level, then the $1.4000 round number. Falling RSI confirms downward pressure increasing.
USDJPY is breaking down again today, taking out its 50-day average and a Fibonacci level near 114.00 to signal the start of a new downleg, confirmed by falling RSI. The pair has dropped into the 112.60 to 113.20 area with next support near 112.40 then 111.25, a Fibonacci level.
GBPJPY is bumping up against 140.00 with support climbing toward 139.70 from 138.10. Next upside resistance possible near 141.25 where the 50 and 200-day averages cluster then 142.25 a Fibonacci test. RSI bouncing off 30 indicates downward pressure easing.
EURJPY is breaking down today, sliding under 121.00 a Fibonacci level and channel bottom to signal the start of a new downtrend. RSI under 50 and falling confirms momentum turning increasingly downward. Next potential support near 120.00 then 119.10.
USDCAD continues to trend lower, dropping from near $1.3180 toward the $1.3020 to $1.3080 range below its 200-day average near $1.3120. Next potential support in the $1.2975 to $1.3000 area between a round number and Fibonacci level.