Traders continue to prepare for President Trump’s upcoming speech at 1:00 pm AEDT, 6:00 pm PST, 9:00 pm EST. Markets appear to be coiling up like springs, ready to pop but unclear on direction. CAD and MXN have been under pressure today and could be particularly active on the comments along with US indices, Asia Pacific markets and defensive havens like JPY and gold.
Asia Pacific Indices
Australia 200 is sending mixed signals. The index has found some support near 5,700 above its 50-day average but still down from a double top near 5,830. RSI has broken under 50 to signal a downturn in momentum with next potential support near 5,600.
Japan 225 has successfully retested 19,000 round number support bouncing back toward 19,120 with next potential resistance at the 50-day average near 19,240. RSI slipping under 50, however, suggests momentum turning downward with next potential support near 18,810 on a breakdown.
Hong Kong 50 continues to roll over with its 24,000 breakdown point becoming resistance and the index diving into the 23,770 to 23,830 zone. RSI falling toward 50 indicates upward momentum weakening and a downturn pending with next potential support near 23,600 then 23,230.
North American and European Indices
US 30 has dropped back toward 20,805 form 20,875 but continues to attract support above 20,800 with more possible near 20,705. RSI remains really overbought and has flattened out suggesting upward momentum may be peaking.
US SPX 500 has levelled off near 2,366 with next resistance possible near 2,370 then 2,381 based on measured moves. RSI indicates upward momentum levelling off. Initial support in a correction possible near 2,359 then 2,350 and 2,336.
US NDAQ 100 is starting to roll over, falling from near 5,350 toward 5,325 as it continues to trend sideways between 5,300 and 5,365 digesting recent gains. RSI remains really overbought and rollover suggests uptrend may be weakening. Next support on a breakdown possible near 5,258.
US Small Cap 2000 has been knocked back under 1,400, falling toward 1,388 while still trading in a 1,380 to 1,410 range. RSI falling toward 50 indicates upward momentum weakening and a downturn possible. Next support possible at the 50-day average near 1,370.
UK 100 continues to hold above 7,200 50-day average and Fibonacci support but remains stuck below 7,300 trading near 7,265. RSI falling toward 50 indicates momentum downshifting from upward to neutral.
Germany 30 is trading near 11,800 bouncing between 11,780 and 11,830 having dropped back from 12,000 but holding above 11,700. RSI falling toward 50 indicates upward momentum fading and a downturn pending.
Gold is sitting in a $1,250-$1,255 Fibonacci cluster as it consolidates recent gains and works off a nearly overbought RSI. Initial resistance in place at the 200-day average near $1,260 then $1,278 with next support possible near $1,230.
Crude Oil WTI continues to form an ascending triangle of higher lows below $54.60. Recently trading near $53.50, it remains in an uptrend above $53.00 with next support at its 50-day average near $52.50.
US Dollar Index is holding steady at 101.00 trading between 100.35 and 101.75, with next support and resistance after that near 100.00 and 102.00. RSI sitting on 50 confirms current sideways momentum.
EURUSD is trading between $1.0585 Fibonacci support and below its 50-day average near $1.0605. Additional resistance possible near $1.0635 with next support possible near $1.0555 then $1.0500. RSI needs to retake 50 to signal an upturn rather than a pause within an ongoing downtrend.
GBPUSD has dropped back from $1.2440 toward $1.2410 where it is retesting support at its 50-day average with its next downside test possible near $1.2355. RSI slipping just under 50 suggests neutral to slightly downward momentum.
NZDUSD appears to be turning back upward with the RSI regaining 50 and the pair bouncing up from near $0.7170 toward $0.7230 while still trading above its 50 and 200-day averages. Next potential resistance near $0.7245 then $0.7315.
AUDUSD remain stuck below $0.7700 but continues to hold above $0.7665 channel support for now. RSI rollover indicates upward momentum fading back toward neutral. Next potential support in a downturn possible near $0.7655 then $0.7600.
USDSGD continues to fall, testing the $1.4000 round number with next potential support near $1.3980 then $1.3945 a Fibonacci test. Resistance remains in place near $1.4085. RSI under 50 and falling confirms downward momentum increasing.
USDJPY is bouncing around 112.35 a Fibonacci level trading between 111.90 and 113.00 in what looks like a normal consolidation phase within an ongoing downtrend. RSI holding below 50 confirms ongoing distribution with next potential support near 111.60 then 111.25.
GBPJPY remains under distribution with 140.00 for the pair and 50 on the RSI emerging as resistance and the pair sliding into the 138.80 to 139.40 area just above its 200-day average. Next potential support near 138.10.
EURJPY remains under distribution, sliding under 119.00 toward 118.70 with next potential support on trend near 118.30 then 117.50 a Fibonacci level. RSI under 50 and falling confirms increasing downward momentum.
USDCAD is breaking out today, clearing $1.3200 to signal the start of a new uptrend, then blasting through its 50-day average near $1.3220 on its way toward $1.3275. RSI driving up through 50 confirms momentum upturn. Next potential resistance near $1.3300 then $1.3390.
USDMXN has regained 20.00 having bounced up off of 19.65 support. RSI had been oversold and now downward pressure appears to be easing. Support rises toward 19.90 with next potential resistance near 20.20 then 20.55.