It has been a mixed day for resource trading. Crude oil continues to bounce back from a recent correction but resource dollars CAD, AUD and NZD continue to struggle. Meanwhile, EUR and GBP continue to climb at the expense of USD and JPY. US indices continue to test round numbers with the US 30 peeking above 22,000. Despite a lift from Apple, however, the NDAQ remains stuck short of 6,000.
Asia Pacific Indices
Australia 200 is still struggling with 5,800 resistance, recently failing to overcome channel resistance and dropping back to test its 50-day average near 5,750. RSI sitting on 50 indicates the broader 5,650 to 5,800 sideways trend remains intact.
Japan 225 is holding above 20,000 support but has run into resistance at a lower high near 20,120. RSI peeking back above 50 indicates momentum starting to turn upward as the index continues an upswing within its broader 19,860 to 20,180 trading range.
Hong Kong 50 met resistance near 27,700 and has dropped back toward 27,560 in a normal trading correction. RSI overbought and suggesting upward momentum peaking indicates a deeper correction possible, with initial support near 27,310 its recent breakout point.
North American and European Indices
US 30 has peeked above 22,000 for a second straight day, trading up toward 22,045 before backsliding. RSI remains really overbought and is flattening out suggesting upward momentum may be peaking here. Initial support in a correction possible near 21,900.
US SPX 500 is still struggling with 2,482 resistance where a small double top may be forming. The index appears to be rolling over, falling toward 2,474 with next support possible near 2,467 then 2,460. RSI rollover indicates weakening upward momentum.
US NDAQ 100 remains stuck well short of the 6,000 round number with initial resistance falling toward 5,945.The index has dropped back toward 5,900. A lower high in the RSI as well indicates upward momentum still slowing and a correction possible with next support near 5,860 then 5,820.
UK 100 continues to trend sideways with the index bouncing around the middle of a 7,300 to 7,500 trading range and the RSI bouncing around 50.
Germany 30’s latest rebound has run out of gas at a lower high near 12,300 with the index falling back toward 12,175. A head and shoulders top remains intact while a falling RSI confirms downward momentum. Support in place near 12,090 then 12,000.
Gold was unable to follow through on Tuesday’s early rally and has run into resistance near $1,275 and the extension of a broken support line. RSI starting to roll over also suggests the current upswing may be ending at a lower high and a pullback possible. With the price slipping back under $1,270, initial support appears near $1,262 then $1,250 and the 50-day average.
WTI crude oil’s selloff was contained by a Fibonacci level near $48.20. The price has bounced back up through $49.00 and on toward $49.50 with resistance still in place in the $49.75 to $50.00 area. RSI remains in an uptrend indicating continued accumulation.
US Dollar Index is still trying to stabilize between 92.60 and 93.00 while working off an oversold RSI. So far, this still looks like a pause within a bigger downtrend with next support near 92.00. Initial rebound resistance near 93.40.
EURUSD remains under accumulation with support moving up toward $1.1800 and the pair breaking out to a new high on trend, advancing on $1.1910 before settling back toward a retest of its $1.1860 breakout point as new support. Next potential upside appears near the $1.2000 round number but an overbought RSI suggests it may need to consolidate before mounting another big assault.
GBPUSD continues to trend upward with support moving up toward $1.3200 from the $1.3155 recent breakout point while the pair advances on $1.3235. RSI uptrend confirms ongoing accumulation. Next potential resistance near $1.3250 then $1.3305 on trend.
NZDUSD continues to roll over and fall away from $0.7500. Resistance falls toward $0.7480 while the pair drops toward $0.7440. RSI rollover confirms upward momentum weakening. Next potential support near $0.7390 a 23% retracement of the recent rally.
AUDUSD is still having trouble with $0.8000 round number resistance. Having failed to hold that level on two attempts, the pair has slipped back toward $0.7956. RSI rolling down from overbought levels signals a correction possible with next potential support in the $0.7875 to $0.7900 area.
USDSGD appears to be turning back upward with support moving up toward $1.3560 and the pair advancing on $1.3580. RSI regaining 30 signals downward pressure starting to ease and a trading bounce underway with initial resistance possible near $1.3645.
USDJPY held 110.00 round number support and has bounced up through 110.60 toward 110.75 with initial rebound resistance possible near 111.00, 111.30 then the 50-day average near 111.55. RSI stabilizing near 30 suggests downward pressure may have peaked for now.
GBPJPY is starting to pick up again with the pair rallying up off of 145.00 and the RSI rallying up off 50 providing confirmation. Support moves up toward 145.60 with the pair climbing toward 146.40 and next resistance possible near 147.00 then 148.00.
EURJPY is breaking out today, clearing 130.85 to complete an ascending triangle and signal the start of a new upleg on trend. Next measured resistance on trend possible near 133.20. RSI holding 60 confirms underlying accumulation continues.
USDCAD continues its upswing with support moving up toward $1.2500 and the pair rallying into the $1.2550 to $1.2600 area. RSI back above 30 indicates an upward correction underway as downward pressure eases. Next resistance near $1.2640 a 23% retracement of the recent downtrend.
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