Chart Signals: Big moves and Big reversals for currencies, WTI selloff intensifies

It was a huge day for trading particularly for currency markets that saw a number of major breakouts and breakdowns, round number tests and failures and big intraday reversals. Some of the more active markets include JPY, GBP, EUR, gold and CAD. Having run out of gas near $50.00, oil appears to be heading back the other way as a correction deepens.

It was a huge day for trading particularly for currency markets that saw a number of major breakouts and breakdowns, round number tests and failures and big intraday reversals. Some of the more active markets include JPY, GBP, EUR, gold and CAD. Having run out of gas near $50.00, oil appears to be heading back the other way as a correction deepens.

Asia Pacific Indices

Australia 200 staged a big bounce off of 5,100 after getting oversold rallying back up toward the 5,160 to 5,170 area with next resistance possible near 5.185 a Fibonacci test hen 5,200. 

Japan 225 briefly dipped under its April low near 15,345 then stormed back, rallying toward 15,600. RSI still trending lower suggests this may be a relief rally within an ongoing downtrend which remains intact below resistance in the 16,000-16,060 zone.

Hong Kong 50 is sitting on 20,000 trying to decide whether to take another turn lower an retest 19,900 or even 19,695 Fibonacci support, or to rally with initial resistance near 20,060 then 20,210. RSI still under 50 indicates momentum still pointing downward for now. 

North American and European Indices

US 30 rallied up off a successful retest of 17,500 support, driving up toward 17,740 with next resistance looming near t its 50-day average near 17,800 while support rises toward 17,680. RIS bouncing around between 40 and 60 confirms a sideways trend. 

US NDAQ 100 staged a bear trip reversal Thursday falling under 4,400 toward 4,362 then rallying back up toward 4,425 with next resistance near 4,445 then 4,460.

US SPX 500 staged a strong bounce up off 2,150 support driving back up toward a test of tis 50-day average near 2,080 but failed to get through. RSI still under 50 which it needs to retake to confirm an upturn. Next resistance near 2,088 then 2,100 if successful with support near 2,064 should the rally falter. 

UK 100 dipped under 5,900 briefly then turned upward and took a run at the 6,000 big round number it needs to retake to call off its recent breakdown. Next resistance near 6,045 if successful. Initial support near 5,950.  RSI climbing off 30 signals a trading bounce starting. 

Germany 30 successfully retested 9,440 support and then rallied up into the 9,.630 to 9.670 range. RSI up turn suggest downward pressure easing. Initial resistance appears near 9,675 then 9,755.

Commodities

Gold is coming off a massive bearish reversal which includes a shooting star candle and a bull trap above $1,300. Gold shot up from near $1,290 toward $1,315 before turning sharply downward and plunging back toward $1,280.  RSI rolling over signals uptrend exhausted and a correction underway with nest potential support in the $1,270 to $1,275 area.

Crude Oil WTI fell out of bed Thursday as support which had been fading finally gave way as the price fell from near $47.75 back toward $45.80 with next potential support near at its 50-day average near $45.55 or a Fibonacci level near $44.83. RSI diving under 50 confirms momentum turning increasingly downward.

FX

US Dollar Index had a volatile day trading up toward 95.55 and down toward 94.25 before finishing near where it started around 94.75. A spinning top candle and RSI near 50 indicate a sideways trend with bulls and bears in balance.

EURUSD is coming off a volatile day which saw it turn downward again following another test of resistance at its 50-day average near $1.1300. The pair dove back under $1.1200 toward $1.1125 before rallying back up into the $1.1220 to $1.1240 area with resistance coming in at a lower level. RSI unable to retake 50 in the rally indicates downtrend still intact.

EURGBP has turned back downward after retesting 0.8000 round number resistance falling back toward 0.7900 with next support possible near 0.7885 then 0.7795. RSI starting to roll over suggests upward momentum peaking.

GBPUSD had a huge day of trading with big swings in both directions falling from near $1.4250, breaking $1.4100 then testing the $1.4000 round number before rallying all the way back to $1.4200 near where it started the day. Flat RSI suggests a sideways trend but clearly we may continue to see big intraday swings within that range.

NZDUSD continues to rebound within a $0.6970 to $0.7140 trading range where it has been consolidating recent gains at a higher level. The pair has popped back above $0.7000 carrying on into the $0.7040 to $0.7070 area. 

AUDUSD is swinging within a wide range currently having tested its 50-day average near $0.7440 and its 200-day average near $0.7280 trading recently in the $0.7360 to $0.7380 zone. RSI falling to test 50 suggests a downturn pending.

USDSGD slumped back under $1.3500 falling from near $1.3540 toward $1.3480 with next potential support near $1.3455 then $1.3400. RSI falling again suggest downward pressure increasing again.

USDJPY staged a major breakdown yesterday taking out the 105.00 round number and plunging into the 103.70 to 104.40 area where it continues to bounce around digesting the big drop. RSI confirms downward pressure increasing but oversold reading suggests a pause or bounce possible at some point.

GBPJPY is coming off a really volatile day where it plunged from near 150.60 down through 150.00 and on toward 145.40 before getting oversold and bouncing back toward the 148.00 to 148.80 area. Support possible near 147.75 and 147.00 with resistance possible near 149.35.

EURJPY started the day with a big downward spike taking out 118.40 and diving toward 116.00 before bouncing back into the 116.90 to 117.50 area. RSI getting really oversold suggests selloff may be getting overdone and a trading bounce possible. 

CADJPY was smashed down from near 82.00 under 80.00 and on toward 79.30 before finding support and bouncing back toward 80.50 in what may be a bear trap washout. RSI oversold suggests potential for a trading bounce.

USDCAD started the day with a big rally surging up from $1.2900 through the $1.3000 round number and Fibonacci resistance trading as high as $1.3090 before plunging back into the $1.2930 to $1.2970 area with next support near $1.2900.