Oil took a sharp turn downward today, particularly after breaking its 50-day moving average, dragging on indices and resource currencies like CAD. Indices generally continue to trend lower with traders taking profits against earnings reports.
Asia Pacific Indices
Australia 200 has stabilized near 5,800 having bounced up off its 50-day average near 5,775. Initial resistance has emerged near 5,835, down from 5,885. RSI still under 50 suggests momentum turning downward with next potential support near 5,755.
Japan 225 tried to regain 18,500 but failed and has drifted back toward 18,400. RSI back above 30 from oversold but so far the 18,100 to 18,565 trading range that has emerged looks like a pause within a bigger downtrend. Next potential support at the 200-day average near 18,000.
Hong Kong 50 continues to slide with the index trading under 24,000 near 23,820 and the RSI still under 50 confirming recent breakdowns. Next potential support appears near 23,635.
North American and European Indices
US 30 remains under distribution, falling under 20,500 toward 20,430 with next downside support possible near 20,270 a 23% retracement of the Trump election rally. RSI still under 50 and falling confirms ongoing downward momentum.
US SPX 500 has paused near 2,340 for a rest but remains under distribution with RSI still under 50 and downtrend of lower highs forming a bearish descending triangle above 2,325. Initial resistance near 2,350 then the 50-day average near 2,356 with next support near 2,313 a 23% retracement of its previous uptrend.
US NDAQ 100 continues to find support near 5,400 having bounced up off of its 50-day average near 5,355. RSI back above 50 suggests it may be turning back upward but it needs to retake 5,445 to call off the formation of a head and shoulders top right shoulder.
UK 100 found some support near 7,100 but distribution appears to be resuming with a rally toward 7,150 having already failed. Next potential support near 7,000 where a round number and the 200-day average converge.
Germany 30 is trying to regain 12,000 and its 50-day average having found some support overnight near 11,950 but is struggling to make headway. The index remains below a broken trend line with RSI under 50 confirming a downturn. Initial resistance has emerged near 12,040 with next downside support near 11,815 a 23% retracement of its previous uptrend.
Gold continues to pause in the $1,275 to $1,300 range, consolidating recent gains and working off an overbought RSI. Recent trading between $1,280 and $1,290.
Crude Oil WTI has turned down decisively, plunging from $52.35 down toward a retest of the $50.00 round number. Increased downward pressure appears to have been triggered by a break of the 50-day average near $51.20, confirmed by RSI breaking under 50. Next potential support near $49.55.
US Dollar Index has paused to lick its wounds near 99.60 after getting hammered back under 100.00 Tuesday. Initial support has emerged near 99.35 but RSI under 50 and falling indicates downward pressure still increasing. Next potential support near 99.00 then 98.65.
EURUSD is sitting on $1.0720 a Fibonacci level digesting Tuesday’s big rally up off of $1.0640 just below $1.0740 resistance. RSI back above 50 suggests momentum turning back upward. Initial support moves up toward $1.0700 with next resistance possible near $1.0765.
GBPUSD remains in a uptrend, building on Tuesday’s massive rally up off of $1.2500. A trading correction has taken the pair back into the $1.2770 to $1.2840 zone well above its $1.2700 breakout point and Fibonacci support. An overbought RSI suggests it may need to pause at some point but is confirming upward momentum for now.
NZDUSD is sitting on the $0.7000 round number with RSI sitting on 50 and is consolidates a recent bounce. Initial resistance near $0.7050 and the 50-day average. A $0.6900 to $0.7100 sideways range appears to be emerging.
AUDUSD appears to be rolling over, falling below its 200-day average near $0.7555 and testing the $0.7500 round number. RSI under 50 and falling confirms momentum turning downward. Next potential support near $0.7475 then $0.7435.
USDSGD is still bouncing around between $1.3950 Fibonacci support and $1.4000 round number resistance with its next potential upside test near $1.4045 and its next potential downside test near 1.3930.
USDJPY is testing its 200-day average once again, having bounced up off of support in the 108.00 to 108.30 area. RSI back above 30 from oversold indicates downward pressure easing and a bounce starting. Initial resistance possible at a Fibonacci cluster between 109.00 and 109.25 then 109.55 and 110.00.
GBPJPY ran into resistance near the 140.00 round number and has dropped back toward its 50-day average near 139.20. It remains well above 138.25 where it broke out of a downtrend. RSI holding above 50 confirms momentum turning upward despite the recent setback.
EURJPY continues to rally up out of a hammer bottom that successfully held 115.00. The pair has advanced on 117.00 with support rising toward 116.30 with next potential resistance near 118.00 and the 200-day average.
USDCAD is breaking out of a two month downtrend today, clearing $1.3400 and advancing on $1.3480 with next potential resistance near $1.3500 then a double top near $1.3590. RSI rising up off 50 confirms upward momentum increasing once again.
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