Major indices finished last week strong with the SPX breaking out to a new all-time high,, while the US NDAQ 100, UK 100 and Germany 30 also rallied strongly potentially setting the stage for catch-up action in the Australia 200 and Japan 225 to start the new trading week. Gold, on the other hand, saw a rally attempt fail at a lower high.
Asia Pacific indices
Australia 200 picked up off of 5,655 support Friday but not enough to call off a descending triangle. It still needs to clear 5,710 to break a downtrend and the pair remains under distribution unless the RSI can retake 50. Next resistance in the 5,730 to 7,755 range between the 50 and 200-day averages.
Hong Kong 50 continues to bounce around 27,480 a Fibonacci level, the 27,500 round number and the 50-day average near 27,570 in a channel between 27,280 and 27,680.
Japan 225 has levelled off in the 20,200 to 20,500 range recently trading near 20,380. RSI sliding back from 70 indicates upward momentum slowing. It remains to be seen if this is a pause within an uptrend or a top forming.
North American and European Indices
US 30 remains unable to break through 22,420 on a second attempt and may be forming a double top. A negative RSI divergence is already in place indicating slowing upward momentum. Resistance drops toward 22,400 with support near 22,290 then 22,200 in a pullback.
US SPX 500 broke out to a new all-time high on Friday, clearing 2,510 to finish the week at 2,520. Support rises toward 2,516. Next measured resistance possible near 2,535. RSI confirms increasing upward momentum but it starting to look overbought.
US NDAQ 100 finished last week climbing up off its 50-day average near 5.925 and rallying toward 5,975 as a bullish ascending triangle continues to form below resistance in the 6,000 to 6,025 area. RSI back above 50 indicates momentum turning up but it still needs to break out of a downtrend to confirm.
UK 100 is breaking out today, clearing its 200-day average near 7,335 and rallying toward its 50-day average near 7,375. RSI breaking out over 50 confirms an upturn with next potential resistance near 7,440 then 7,520.
Germany 30 is under increasing accumulation with support rising toward 12,710 from 12,675 and the index advancing on 12,845. Next potential resistance on trend near 12,865 then the June high near 12,950. RSI confirms increasing upward momentum but is getting overbought.
Gold resumed its downtrend after a rally failed at a lower high near $1,290 The price then dove back down through $1,282 a Fibonacci level and on toward $1,280. Next potential downside support appears near $1,277 then $1,267, RSI under 50 and falling confirms downward momentum accelerating.
WTI crude oil is still dropping back from a Thursday peak near $52.55, falling to test $51.00 which held while resistance dropped toward $51.50. Next downside support possible near $50.40 or $50.00.RSI rollover indicates upward momentum may have peaked for now.
US Dollar Index has slipped back under 93.00 from a recent peak near 93.50. RSI levelling off near 50 indicates sideways momentum. Initial support possible near 92.80 then 92.45.
EURUSD is trying to bounce back, climbing from $1.1790 toward $1.1820 but so far the bounce appears contained by the 50-day average near $1.1835. The pair would need to retake $1.1900 to call off a head and shoulders top. More support in place near $1.1720.
GBPUSD keeps steadily drifting downward. Resistance falls toward $1.3455 from $1.3500, while RSI falling toward 50 indicates upward momentum fading back toward neutral. The pair appears to be stabilizing near $1.3400 with additional support possible near $1.3335.
NZDUSD is still drifting downward, unable to retake $0.7250 or 50 on the RSI and slipping back toward $0.7200. Higher lows in the pair and the RSI look encouraging with support holding above the 200-day average near $0.7155.
AUDUSD found some support near $0.7800 and has paused between there and $0.7850. With the RSI still falling away from 50 and the 50-day average just starting to roll over, this appears to be a rest stop within a potentially bigger downswing. Next potential support appears near $0.7775 then $0.7745.
USDSGD is sending mixed signals. The pair appears to be digesting its recent breakout from an ascending triangle base over $1.3500. The pair is holding above $1.3540 near $1.3560 its 50-dqay average while the RSI holds above 50 to indicate continued underlying support. It continues to struggle, however, with resistance near $1.3600 then $1.3645.
USDJPY has levelled off between 111.95 and 113.00 with a flattening RSI confirming consolidation. Recent trading between 112.20 and 112.60.
GBPJPY continues to hang around 150.00 while pausing to work off an overbought RSI and digest a big rally. The pair continues to trade above 148.70 support with initial resistance near 151.55 then 152.85.
EURJPY keeps trending up from 131.85 its recent breakout point as support. The pair has moved back up into the 132.80 to 133.10 area with next potential resistance near 134.60. Rising RSI confirms increasing upward momentum.
USDCAD continues to climb with RSI above 50 and rising indicating an accelerating uptrend. The pair is rallying up off of $1.2420 support taking another run at $1.2470 near the 50-day average and a Fibonacci level. Next potential resistance near the $1.2500 round number then $1.2600.
CMC Markets is an execution only service provider. 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.
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.