Chart Signals - Monday June 20

Trading was mixed Friday with some of the markets that really reversed Thursday like stocks and JPY more subdued and other markets playing catchup like oil and CAD. Gold also resumed its uptrend shrugging off a Thursday takedown. USD retreated after St. Louis Fed President Bullard flipped from the hawkish camp to the dovish camp. Sterling continued to rally against USD and JPY as Brexit campaigns remained suspended but traders speculated momentum could swing back toward the Remain side.

Trading was mixed Friday with some of the markets that really reversed Thursday like stocks and JPY more subdued and other markets playing catchup like oil and CAD. Gold also resumed its uptrend shrugging off a Thursday takedown. USD retreated after St. Louis Fed President Bullard flipped from the hawkish camp to the dovish camp. Sterling continued to rally against USD and JPY as Brexit campaigns remained suspended but traders speculated momentum could swing back toward the Remain side. .

Asia Pacific indices

Australia 200 levelled off in the 5,145 to 4,195 area following a big push down to 5,100 where support held. An oversold RSI suggests potential for a trading bounce with next resistance possible near 5,235.

Hong Kong 50 was unable to hold above 20,210 Fibonacci resistance and has sunk back toward 20,090 with more support possible near the 20,000 round number. RSI under 50 indicates downward momentum still intact.

Japan 225 has stabilized near 15,600 with a doji candle indicating the market coming back into balance after a big decline and rebound. Currently trading in a range between 15,465 and 15,745 having rallied up off a successful retest of 15,345 with next resistance near 15,895. .

North American and European Indices

US 30 continues to struggle with resistance at its 50-day average near 17,800 having fallen back to test 17,600 before bouncing back toward ward 17,680. RSI swinging around between 40 and 60 indicates a sideways trend emerging between 17,500 and 18,000.

US NDAQ 100’s rebound ran into resistance near 4,445 and the index has dropped back toward the 4,360 to 4,390 area with next downside support possible 4,345 a Fibonacci level. RSI suggests downward pressure increasing again. 

US SPX 500 faltered near its 50-day average around 2,080 and has started to retreat again. RSI stuck under 50 indicates downward pressure hasn’t gone away. Support in place near 2,065 then 2,052. 

UK 100 is bouncing around the 6,000 round number trading between 5,970 and 6,050 with more resistance in place near 6,060 then 6,100. RSI bouncing off 30 suggests downward pressure easing for now.

Germany 30’s rebound faltered at a lower high near 9,700 and the index spend Friday bouncing around between there and 9,580. RSI suggests downward pressure easing and a base potentially starting to form. 

Commodities

Gold successfully tested support near $1,276 and has resumed its uptrend, advancing on $1,296 with next resistance near the $1,300 round number then $1,305 a Fibonacci level with support rising toward $1,286. RSI steady above 60 indicates underlying uptrend still intact. 

Crude Oil WTI staged a strong bounce up off its 50-day average near $45.80 driving back up toward $47.80. It would need to retake $48.10 on the price and 50 on the RSI to suggest this is more than just a big trading bounce and call off an emerging downtrend. Initial support rises toward $47.20.  

FX

US Dollar Index is turning back downward again falling toward 94.20 after an attempt to break out over 95.00 ended in a head fake. RSI under 50 and rolling over suggests downtrend resuming with initial support near 94.00 then 93.60.

EURUSD staged an inside consolidation day Friday trading in the $1.1240 to $1.1290 area having regained $1.2000 from $1.1135 but remains stuck below its 50-day average near $1.1310. RSI on 50 but trending higher suggests momentum turning upward. 

GBPUSD rallied for a second straight day Friday, driving up of $1.4200 through $1.4260 and driving on toward a test of $1.4390 with next resistance after that at the 50-day average near $1.4435 then the $1.4500 round number. Thursday’s dip under $1.4100 looks like a bear trap washout that held the  $1.400 round number and channel support. RSI turning up toward 50 indicates downward pressure easing and an upturn in momentum pending.  

NZDUSD continues to attract support above the $0.7000 round number and $0.7015 a Fibonacci level trading near $0.7060. RSI confirms upward momentum still increasing. Next potential resistance near $0.7100 then $0.7145

AUDUSD has stabilized near 40.7400 trading between $0.7380 and $0.7420. RSI holding 50 indicates underlying uptrend still intact following a successful test of its 200-day average. Initial resistance at the 50-day near $0.7440 then the $0.7500 round number. 

USDSGD slipped back under $1.3500 toward $1,.3480 with falling RSI confirming its downtrend has resumed with next potential support near $1.3455 then $1.3405.

USDJPY has paused in the 104.10 to 104.40 area to digest recent losses and work off an oversold RSI but it remains in a downtrend well below the 105.00 round number and yesterday’s 105.35 breakdown point. Next support near 103.60.

GBPJPY continues to rally up off Thursday’s low near 145.60 driving up from near 148.50 toward 149,90 on Friday. It remains in a downtrend below resistance near the 150.00 round number and 151.50 breakdown point.

EURJPY has levelled off in the 117.20 to 117.80 area near the middle of Thursday’s big 115.50 to 119.50 range working off an oversold RSI.

CADJPY has started to rally out of a bear trap reversal that briefly took the pair under 80.00 and tested 79.40. Trading back up into the 80.70 to 81.20 area next resistance appears near 82.55 a Fibonacci level.

USDCAD resumed its downtrend Friday dropping from near $1.2940 back into the $1.2840 to $1.2900 area continuing to reverse a spike up through $1.3000 and on toward $1.3100 Thursday which failed to hold. RSI dropping back under 50 suggests the recent rebound may be ending and its downtrend resuming. Initial support in place at the 50-day average near $1.2850.