What looked more like pauses yesterday have grown into full-fledged corrections today with indices dropping. Capital appears to be finding its way back into defensive havens with JPY bouncing back strongly against several currencies. A number of markets have either faltered short of 50 or fallen back below it suggesting recent enthusiasm has faded for now.
Asia Pacific Index Chart Signals
Australia 200 has been slammed back down under 5,000 falling into the 4,900 to 4,925 area where some support has appeared with more possible near 4,875.
Japan 225 is rolling over again, still retracing Friday’s rally falling from 17,800 back into the 17,380 to 17,500 zone with more support possible near 17,200.
Hong Kong 50 has been rolling over after encountering resistance near 19,600 failing to hold 19,500 and dropping back toward the 19,150 to 19,200 area with a retest of the 19,000 round number possible.
India 50 failed to break through 7,560 or 50 on the RSI and has turned back downward plunging through 7,500 and dropping toward 7,420 with next support possible in the 7,340 to 7,360 area.
North American and European Index Chart Signals
US 30 has dropped back toward 16,100 after failing to overcome resistance near 16,500 and 50 on the RSI signalling a new downswing underway. 16,255 support failed to hold and resistance has dropped toward 16,190 with a retest of the 16,000 to 16,030 area looking possible
US NDAQ 100 has been knocked back down toward 4,195 after failing to overcome Fibonacci resistance near 4,310. RSI has stalled just below 50 for now but remains in an upswing for now. Next support near 4,180 then 4,140.
US SPX 500 has been pounded back down toward 1,900 after faltering near 1,940 while RSI has dropped back under 50. A bear trap bounce suggests some support may be coming in but if that fails, 1,882 could be tested.
Germany 30 has come under renewed pressure falling from 9,780 a Fibonacci level and has dropped back down through the 9,600 to 9,670 range which failed to hold toward 9,500 with next potential support near 9,470.
UK 100 was unable to hold above 6,085 a 23% retracement level after faltering near 6,135 and has been soundly driven back down through 6,000 on into the 5,860 to 5,890 range just above 5,855 key support.
Commodity Chart Signals
Gold has paused in the $1,124 to $1,130 area to consolidate yesterday’s gains just below its 200-day moving average near $1,132. RSI indicated underlying upward momentum intact. Next resistance on a breakout possible in the $1,150 to $1,155 area.
Crude Oil WTI failed a key support test in the $29.70 to $30.00 area, dropping through the bottom an retesting it as new resistance. This signals that oil’s broader downtrend has resumed, confirming the RSI’s recent fall back under 50. The price has dropped back into the $29.00 to $29.40 area with next support possible near $28.35.
FX Chart Signals
US Dollar Index is steady just below 99.00 with sideways momentum confirmed by RSI sitting on 50 as it continues to trade between 98.20 and 99.80.
EURUSD is holding steady near the middle of its $1.0800 to $1.1000 channel with RSI on 50 confirming sideways momentum. Initial support and resistance near $1.0890 and $1.0940 then $1.0970.
NZDUSD is having an active morning doing a round trip between $0.6490 and $0.6540 in the space of a few minutes following the New Zealand employment figures. RSI needs to clear 50 to signal an upturn. Support rises toward $0.6470.
AUDUSD is trending sideways in the $0.7030 to $0.7075 range with RSI confirming sideways momentum as base building continues. More support in place near $0.7000 then $0.6900.
USDCNH is creeping up toward 6.6280 where a breakout would complete an ascending triangle that would signal the start of a new upleg with next potential resistance near 6.6800 where a measured move and previous high converge. RSI lifting up off 50 suggests momentum turning upward again.
USDJPY has turned downward once again. After peaking near 121.80, it fell toward 121.00 than on toward 120.00 which is currently being tested with next potential support on a breakdown near 119.00 then 118.45 which would wipe out Friday’s rally. RSI indicates upward momentum starting to weaken.
EURJPY has turned downward once again having failed to break through resistance at 132.00, dropping back toward 121.00 in what looks like a trading correction. R retest of the 50-day average near 130.50 or the 130.00 round number appears possible.
CADJPY is getting hammered back down on a double whammy of a JPY rebound and CAD being undermined by a downturn in crude. The pair faltered at its 50-day average near 87.00 and hs dropped through 86.20 on its way toward the 85.40 to 85.80 area with next potential support near the 85.00 round number then 84.55 a Fibonacci test.
USDSGD has stabilized above $1.4200 support and its 50-day average, bouncing up toward $1.4290. I remains in a downswing of lower highs below $1.4330.