JPY continues to recover posting gains against USD, EUR and GBP today as traders continue to seek out defensive havens. Indices, meanwhile, continue to show signs of exhaustion and weakening momentum, particularly the Japan 225 and Germany 30.
Asia Pacific Indices
Australia 200 appears to be stabilizing. Having successfully retested 5,665 support, the index has bounced back up above 5,700 and on toward 5,720. Resistance remains in place near 5,800. RSI levelling off near 40 suggests downward pressure may have peaked for now.
Japan 225 is still drifting downward, falling away from a lower high near 19,835 into the 19,620 to 19,690 area. RSI testing 50 where a break would confirm a downturn. Next potential support near 19,265 the 50-day average.
Hong Kong 50 remains in an uptrend trading in the 25,710 to 25,800 area well above its recent 25,500 breakout point. A negative RSI divergence, however, suggests slowing upward momentum. Next potential resistance near the 26,000 round number.
North American and European Indices
US 30 is falling back after a failure to break out over 21,130 resistance put a big double top into place. RSI continues to trend lower indicating weakening upward momentum. Initial support tests possible near 21,000 then the 50-day average near 20,780.
US SPX 500’s advance stalled near 2,418 and the index has dropped back toward 2,410. RSI rolling down from a lower high indicates upward momentum slowing and a correction possible with initial support near 2,400 then 2,380.
US NDAQ 100 is still struggling with 5,800 resistance while a lower high in the RSI and a negative divergence suggest upward momentum has peaked. Initial support possible near 5,695 a 23% Fibonacci retracement of the recent upleg.
UK 100 ran into resistance at 7,550 and has started to drop back, falling toward 7,520. A lower high in the RSI and a negative divergence suggest upward momentum has peaked and a correction possible with initial support near 7,500 then 7,450.
Germany 30 appears to be under distribution, falling away from a double top near 12,900, trading near 12,600 and forming a bearish descending triangle above 12,475. Next potential support at the 50-day average near 12,355. RSI approaching 50 from above indicates confirmation of a downturn pending.
Commodities
Gold is consolidating recent gains in the $1,260 to $1,270 range holding well above its $1,256 recent breakout point. Flattening RSI suggests sideways momentum emerging.
WTI is sitting on its 50 and 200-day average just above $49.00 near the middle of an emerging $47.85 to $51.55 trading range. RSI sitting on 50 confirms a consolidation phase underway. Initial resistance near $50.00 with initial support near $48.90.
FX
US Dollar Index continues to form a saucer bottom between 96.65 and 97.75 with next potential resistance near 98.10. RSI near 40 indicates downward pressure easing but not totally gone.
EURUSD remains below $1.1200 as it retreats from a recent high near $1.1260. RSI falling away from 70 confirms a correction starting. Initial support near $1.1095 1 23% retracement of the recent uptrend has held so far with next support if that fails possible near $1.1000.
GBPUSD is starting to bounce back having held above $1.2800 and its 50-day average to keep its underlying uptrend intact. The pair has advanced on $1.2870 with next potential resistance near $1.2930 its recent breakdown point.
NZDUSD is testing its 200-day average and the top of a $0.6850 to $0.7100 trading range. RSI above 50 and rising indicates increasing accumulation as support rises toward $0.7040. Next potential resistance in the $0.7200 to $0.7240 range.
AUDUSD has moved into a $0.7420 to $0.7520 trading range with next support moving up toward $0.7390 from $0.8320. Next upside resistance possible near $0.7535 the 200-day average and a Fibonacci level. RSI near 50 suggests sideways momentum.
USDSGD continues to attract support above $1.3810 a Fibonacci level, holding ne3ar $1.3850. RSI suggests downward pressure levelling off. Initial resistance near $1.3900 then $1.3950 in a rebound.
USDJPY is testing the bottom of a 110.65 to 112.15 Fibonacci trading range. RSI failing to retake 50 and falling again indicates the broader downtrend remains intact and is resuming. Next support possible in the 110.00 to 110.20 area between a round number and the 200-day average.
GBPJPY is still trending back downward bouncing around between 141.85 and 143.30, 38% and 50% retracements of the recent uptrend. The lower end also coincides with the 50-day average which has held so far. RSI under 50 and falling indicates downward pressure still increasing. Next potential support near 140.40 the 62% retracement level.
EURJPY is breaking down today, the pair has dropped back under 124.00 with next potential support near 123.06 then 122.65. RSI falling toward 50 confirms upward momentum slowing and a downturn pending.
USDCAD has confirmed support near $1.3400 and is starting to turn back upward on both the pair and the RSI to suggest the recent downswing has ended and a bounce starting. Support has moved up toward $1.3450 with resistance possible at the 50-day average near $1.3500 then $1.3545.
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