The Yen continues to attract renewed interest, particularly relative to USD and EUR. GBP has also been active today, retesting $1.2000 against USD and then rebounding, potentially completing a bullish double bottom. Indices, meanwhile, continue to show signs of coming under distribution.
Asia Pacific Indices
Australia 200 continues to slip away from 5,800 confirming a bull trap peak last week when it traded up to 5,820 and fell back. RSI back under 70 and falling indicates a downward correction underway with next potential support near 5,700 then 5,650.
Japan 225 appears to be coming under distribution as it retreats from a double top near 19,700 and forms a descending triangle above 19,000 a sign of distribution. RSI overbought and rolling over indicates upward momentum has peaked and a correction possible. Recent trading between 19,040 and 19,120. Next potential support on a breakdown at the 50-day average near 18,730.
Hong Kong 50 is still struggling with 23,000 resistance with the index and RSI showing signs of levelling off. Signals are mixed though as a higher low near 22,675 and a late rally up out of the 22,760 to 22,790 zone and on toward 22,810 suggests accumulation may be resuming.
North American and European Indices
US 30 is still trending sideways trading near 19,900 within a 19,700 to 20,000 trading channel. Initial support and resistance near 19,850 and 19 890. RSI drifting downward indicates exhausted uptrend momentum weakening.
US SPX 500 is still struggling with 2,282 resistance where it appears to have completed a double top. The index has drifted back toward 2,270 while RSI falling toward 50 signals upward momentum fading and a downturn pending. Next support possible near 2,265 then 2,252.
US NDAQ 100 broke out to a new high Friday clearing 5,050 and trading up toward 5,066. Next measured upside test near 5,100 with next downside support near 4,960 a recent breakout point. Support in a pullback may appear near 5,040 then 5,000.
UK 100 reached another new high on trend near 7,370 but has since slipped back toward 7,330 with next support possible near 7,300. The index remains under accumulation but a really overbought RSI suggests potential for a correction. This index may continue to be impacted by swings in GBP, moving in the opposite direction.
Germany 30 is quietly drifting downward as it trades in a 11,445 to 11,700 sideways range. RSI back under 70 and falling toward 50 indicates upward momentum fading. Recent trading in the 11,530 to 11,580 area with next support near the 11,500 round number.
Gold remains under accumulation, trading above $1,200 which has become round number support and near $1,203 a Fibonacci level. Initial resistance possible near $1,208 followed by $1,220. Rising RSI confirms upward momentum still increasing.
Crude Oil WTI is bouncing around between $52.00 and $52.60 near the middle of a $50.00 to $54.20 trading range.
US Dollar Index is still slowly drifting downward recently trading near 101.50 below 102.00 resistance with next support in the 100-80 to 100.90 area followed by 100.00. RSI sitting just below 50 indicates some distribution.
EURUSD continues to fall back as a recent bounce fades. Resistance has dropped back toward $1.0610 from $1.0680 while the pair is testing $1.0585 Fibonacci support with its next test near the $1.0500 round number.
GBPUSD is staging a positive reversal today, the pair dipped briefly under $1.2000 but held $1.1970 completing a double bottom and has since bounced back into the $1.2040 to $1.2080 area. next resistance near $1.2300. This appears to be a bear trap bottom forming.
NZDUSD is sending mixed signals. It continues to encounter resistance near $0.7140 keeping its downtrend of lower highs intact. RSI stalling near 60 also suggests a rebound within an ongoing downtrend may be ending. The pair has slipped back toward $0.7100 with next potential support near $0.7045 and the 50-day average then $0.7000. Next resistance on a breakout possible near $0.7220.
AUDUSD has encountered some resistance near $0.7500 and its 200-day average and has slipped back into the $0.7460 to $0.7480 to digest recent gains. Additional support in place near $0.7400 and the 50-day average with next upside resistance near $0.7565.
USDSGD has paused near $1.4260 and its 50-day average but it remains in a downtrend of lower highs below $1.4345. RSI steady near 40 suggests a pause underway within a downtrend with next potential support near $1.4200 then $1.4155.
USDJPY continues to roll over with 115.00 becoming lower round number resistance while the pair falls into the $113.60 to $114.40 range around 114.00 a Fibonacci level and its 50-day average. . Next downside support possible near 112.95.
GBPJPY is having a mixed day. It started by gapping down from 139.00 trading down toward 136.45 then bouncing back toward 138.10 a Fibonacci level. RSI getting oversold suggests recent slide may be overdone but it’s too early to say. The pair needs to fill in the rest of the gap in short order to form a base and call off the breakdown otherwise it looks vulnerable to further declines.
EURJPY is testing 121.00, a 23% Fibonacci retracement and the bottom of a trading channel with te top near 124.00. RSI has already broken 50 to signal distribution and a price break would confirm the start of a new downtrend with next potential support near the 120.00 round number then 119.00 a 38% Fibonacci retracement of the previous uptrend.
USDCAD is holding steady today near 1.3170 above its 200-day average near $1.3140 with next support near $1.3030 and initial resistance possible near $1.3190.