AUD, NZD and CAD have all been strengthening to start the week with AUDUSD testing the $0.7500 round number today. Index action has been mixed with Australia 200 and Hong Kong 50 showing signs of peaking while Japan 225 consolidates a breakout.
Asia Pacific Indices
Australia 200 remains in a downtrend with its recent breakdown point of 5,800. RSI failed to retake 50 confirming distribution. A head and shoulders top may be forming above 5,665.
Japan 225 is having an inside consolidation day trading above its 20,000 breakout point and below resistance near 20,000 recently near 20,140. A negative RSI divergence suggests upward momentum may be peaking.
Hong Kong 50 continues to struggle with 26,000 resistance, peaking at 25,975 and slumping back toward 25,860. Next potential support near 25,600. RSI overbought indicates potential for a pause or a correction.
North American and European Indices
US 30 is consolidating Friday’s breakout over 21,130 trading near 21,190 just below 21,230 resistance. A large negative RSI divergence suggests upward momentum slowing but for now the primary uptrend remains intact with next measured resistance near 21,300.
US SPX 500 is having an inside consolidation day trading near 2,435 digesting last week’s breakout over 2,420 to new highs. Next potential measured resistance near 2,440.
US NDAQ 100 has encountered some resistance near 5,885 with more possible near the 6,000 round number. An overbought RSI and a negative divergence suggest slowing upward momentum and the potential for a correction back toward 5,822 its recent breakout point.
UK 100 is starting to drift back, falling from 7,600 toward 7,540 with next potential support near 7,500 then a previous resistance level near 7,450. A new high Friday was not confirmed by the RSI, a negative divergence that suggests upward momentum slowing.
Germany 30 is closed for a holiday today
Gold continues to climb, confirming Friday’s breakout over $1,270 with an advance toward $1,282 with next resistance possible near $1,292 then the $1,300 round number. Rising RSI confirms increasing upward momentum. Initial support rises toward $1,278.
A trading bounce in WTI crude oil came to a quick end, topping out at a lower high near $48.30. Oil has since resumed its downtrend, falling back toward $47.20 with next support possible near $46.45 then $45.25. RSI under 50 and falling indicates downward momentum increasing.
US Dollar Index is testing 96.60 channel support which has held so far. RSI rising between 30 and 50 indicates downward pressure easing. It’s still unclear if this is a base forming or a pause within a bigger downtrend. Initial rebound resistance near 97.20 and 97.70. with next measured support near 95.50 on a breakdown.
EURUSD ran into resistance near $1.1290 and has dropped back under $1.1260. A head and shoulders top in the RSI signals upward momentum may be peaking for now. Initial support possible near $1.1200 then $1.1160.
GBPUSD continues to bounce up off of $1.2800 rallying up off of $1.2860 support toward $1.2910 with next resistance possible near $1.2950 its recent breakdown point then $1.3000. RSI back above 50 confirms turning back upward.
NZDUSD continues to climb with rising RSI indicating increasing upward momentum. The pair continues to attract support above $0.7100 and its 200-day average with next resistance possible near $0.7145 then $0.7200.
AUDUSD is on the move, rallying up from $0.7420 to test $0.7500 with next potential resistance on a breakout near $0.7535 a Fibonacci level and the 200-day average. RSI bouncing back above 50 signals momentum turning upward.
USDSGD dipped below $1.3800 briefly down toward $1.3785 then bounced back up toward $1.3830. It's unclear if this is the first crack toward a breakdown, or a bear trap reversal since the pair has been sitting right on $1.3800 recently. RSI, however, suggests downward pressure starting to ease.
USDJPY remains in a downtrend, trading below 110.60 its recent breakdown point, and sitting on its 200-day average near 110.30 with next potential support at the 110.00 round number. RSI holding below 50 and falling indicates ongoing distribution.
GBPJPY successfully tested support near 141.85 a 50% Fibonacci retracement of its previous downtrend and the 50-day average. It has rebounded toward 142.80 with next bounce resistance possible near 143.30. RSI stabilizing near 40 suggests downward pressure levelling off.
EURJPY recently completed a double top near 125.80 and has started to drop back, sliding under 125.00 toward 124.20. RSI falling toward 50 indicates downward pressure fading and a downturn pending.
USDCAD failed to hold above $1.3500 and has turned back downward falling under that round number and the 50-day average toward $1.3475. RSI staying below 50 confirms continuing distribution. Next potential support near $1.3460 then $1.3400.
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