Commodities have been in fire today with copper breaking out and WTI completing taking back all of Friday’s losses and then some. Resource price gains and positive US earnings have sparked renewed interest in resource stocks sending resource sensitive indices like Australia 200 higher.
Asia Pacific Indices
Australia 200 continues to rebound, rallying up from 5,680 toward 5,760, retaking its 50-day average along the way. RSI peeking back above 50 signals momentum turning upward but the index needs to clear 5,775 to call off a descending triangle. Next potential resistance on a breakout near 5,800 then 5,835.
Japan 225 continues a trading bounce up off of 19,900, regaining 20,000 and advancing on 20,100. RSI bouncing around 50 indicates a sideways trend. Next potential resistance near 20,160 and 20,205.
Hong Kong 50 is still trending upward, advancing from near 26,860 toward 26,940 with the 27,000 round number resistance level looming. RSI is getting overbought but continues to confirm the uptrend for now.
North American and European Indices
US 30 has rallied up from 21,530 toward 21,640 today and is approaching a retest of 21,695 resistance, where a breakout would complete a bullish ascending triangle. RSI steady near 60 indicates continuing accumulation. Next resistance on a breakout possible near a measured 21,890.
US SPX 500 is bumping up against 2,480 resistance having confirmed support remains in place near 2,465. A breakout would signal the start of a new upleg that could challenge the 2,500 round number initially.
US NDAQ 100 is breaking out today, clearing 5,925 and successfully retesting it as new support, opening the door to a potential test of the 6,000 round number. RSI overbought but indicating continued upward momentum for now.
UK 100 continues to swing upward within a 7,300 to 7,500 trading range. Support moves up to a higher low near 7,380 with the index trading up near 7,440. RSI bouncing around 50 indicates a sideways trend emerging.
Germany 30 has bounced back above 12,240 the neckline of a head and shoulders top, after finding some support near 12,140. Recently trading near 12,265, initial resistance appears near 12,300 then 12,380. RSI indicates downward momentum remains intact so this could be an upward correction within a bigger downtrend.
Gold continues to struggle with $1,260 resistance, pausing between there and $1,250 to digest the rally up from $1,205. The price remains in an upswing as long as it continues to hold above its 50-day average.
WTI crude oil is on the rebound for a second straight day. Building on its big bounce up off of $45.25 Monday, support has moved up toward $47.00 and the price has rallied back up toward $47.45, clawing back all of Friday’s losses. Next potential resistance near $48.25.
Copper is breaking out today, clearing $2.72 and advancing on $2.80. Next resistance appears near $2.82 a prior high then $2.93 a Fibonacci level. RSI overbought but still indicating increasing upward momentum for now.
US Dollar Index has resumed its downtrend following a pause, dropping from 93.80 toward 93.50 with next potential support near 93.00.
EURUSD continues to trend upward, today taking a run at $1.1700 from $1.1630 higher support before slipping back toward $1.1655. RSI is slightly overbought but so far continues to confirm increasing upward momentum. Next potential resistance near $1.1720 then $1.1800 the 200-week moving average.
GBPUSD is in rally mode today, driving up off of $1.3000 through $1.3040 and on toward $1.3080 at one point. RSI climbing up off 50 confirms the upward acceleration. Next potential resistance near $1.3115 then $1.3155.
NZDUSD is bouncing around between $0.7400 and $0.7450 staging a second inside day in a row as it consolidates a recent breakout over $0.7375. RSI slipping back under 70 suggests a correction or pause underway as upward momentum starts to fade.
AUDUSD has levelled off between $0.7900 and $0.8000 round number resistance while consolidating a huge rally up from $0.7600 and working off an overbought RSI.
USDSGD remains under distribution, falling into the $1.3590 to $1.3630 zone with next potential support near $1.3540. RSI getting oversold so a trading bounce possible but for now it continues to confirm downward momentum.
USDJPY continues to bounce up off of 110.60 a Fibonacci level, rallying up from 110.80 into the 111.30 to 111.50 zone. Next upside resistance tests possible near 111.65 the 50-day average then the 112.00 to 112.15 area near the 200-day and another Fibonacci test.
GBPJPY is breaking out of a downswing today, clearing 145.00 to confirm the successful test of 144.00 support near the 50-day average. Next upside tests possible near 146.00 then 146.90. RSI regaining 50 confirms an upswing underway.
EURJPY remains in an uptrend, rallying up from 129.30 support back through 130.00 and on toward 130.50. Next potential resistance near 130.80 then 132.20 on trend. RSI setting a higher low near 60 confirms upward momentum intact.
USDCAD continues to trend downward, bouncing around $1.2500 trading between $1.2480 and $1.2530. RSI is really oversold so a bounce remains possible. Next resistance near $1.2540 with next support near $1.2445 the April 2016 low.
Disclaimer: CMC Markets is an order execution-only service. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.