It’s a mixed day for markets technically. Defensive havens and resource currencies are in rally mode with the USD levelling off. There also is a rotation underway in US indices with the US NDAQ 100 breaking out over 5,000 and climbing while the US 30 and US SPX 500, which had been outperforming lately, starting to ease into corrections.
Asia Pacific Indices
Australia 200 remains under accumulation as shown by the continuing trend of higher lows in both the index and the RSI. RSI is way overbought, however, suggesting the potential for a trading correction. The index peeked above 5,800 trading up near 5,825 before dropping back in what could be a bull trap peak. Initial support in a correction possible near 5,860 then 5,818.
Japan 225 is backsliding again falling from near 19,600 toward 19,440 with next support possible near 19,315 then 19,220 and 19,000. More resistance in place near 19,700 then the 20,000 round number. RSI falling toward 50 indicates upward momentum slowing and a downturn pending.
Hong Kong 50 has encountered some resistance at a lower high near 22,620, keeping its four month downtrend intact and is hanging around its 50-day average near 22,540 with next support possible near 22,500 then 22.190. RSI peaking near 60 a sign of continued distribution.
North American and European Indices
US 30 is drifting downward after another run at 20,000 failed to break through, peaking this time at 19,998 a slightly lower high. Falling RSI indicates weakening upward momentum. The index has drifted back into the 19,900 to 19,940 area with initial resistance near 19,970 and next support possible near 19,825.
US SPX 500 has slipped back under 2,277 resistance toward 2,270 after trading up toward 2,282 on Friday. Lower highs in the RSI indicate upward momentum slowing despite the all-time high and a correction back toward 2,245 to 2,232 support still possible.
US NDAQ 100 is breaking out today, decisively clearing 5,000 and advancing on 5,030 with support rising toward 5,010. RSI clearing 60 confirms momentum turning increasingly upward. Next measured resistance possible near 5,060.
UK 100 remains under accumulation trading in the 7,210 to 7,240 area. RSI is overbought suggesting potential for a correction but confirms upward momentum is still intact for now. Initial support possible near 7,160 then 7,100 with next measured resistance in the 7,275 to 7,300 area.
Germany 30 remains stuck below 11,650 resistance trading up toward 11,610 before sliding back into the 11,520 to 11,560 area. RSI overbought and rolling over indicates recent rally overdone and exhausted with a correction possible perhaps back toward 11,500 or 11,445 its recent breakout point.
Gold continues to climb, driving up off a successful test of Fibonacci cluster and breakout point support near $1,172 back up into the $1,182 to $1,186 area with next resistance possible in the $1,190 to $1,204 range where the 50-day average, round number and 38% Fibonacci retracement converge. RSI above 50 and rising indicates upward momentum accelerating.
Crude Oil WTI appears to be establishing a $51.60 to $54.20 range for consolidating recent gains. Upward momentum has been slowing and a correction appears to be underway today with the price sliding from near $53.40 toward a test of the channel bottom. Should that fail, next potential support may appear near $50.00 then the 50-day average near $48.90. RSI testing 50 where a break would signal a downturn in momentum. $52.60.
US Dollar Index is trading between 102.00 and 102.50 today below recent 103.00 resistance and above 101.35 recent support. RSI sitting on 50 indicates neutral momentum.
EURUSD is trying to build support in a higher range between $1.0500 and $1.0550 having staged a big rally and correction recently. RSI hanging around 50 indicates some indecision on direction. Next potential support near $1.0475 then $1.0360 with next resistance possible near $1.0585 and $1.0615.
GBPUSD is breaking down today taking out $1.2175 and dropping toward $1.2140 signalling the start of a new downleg with next potential support near $1.2115 then $1.2060 and $1.2000. RSI under 50 and falling indicates downward pressure increasing.
NZDUSD continues to base build consolidating at a higher level near $0.7000 and $0.7030 having completed a saucer bottom. RSI holding 50 following a breakout confirms momentum turning back upward. Next resistance possible near $0.7045 then $0.7120 with next support near $0.6955.
AUDUSD is turning increasingly upward as it rallies out of a rounded bottom base. Support has moved up from $0.7300 toward $0.7340 with upside tests in place near $0.7375 then the 50-day average near $0.7405. RSI back above 50 confirms upturn in momentum.
USDSGD continues to roll over with attempts to retake $1.4400 and 50 on the RSI failing instead confirming the start of a new downtrend with next potential support near $1.4255 a 23% Fibonacci retracement of the previous uptrend and the 50-day average. .
USDJPY continues to retreat with the pair falling from a lower high near 117.50 toward 116.00 and the RSI falling toward 50 indicating a downturn in momentum pending. Nest potential support near 115.40 a Fibonacci test and 115.00.
GBPJPY continues to slide, falling through 142.25 a Fibonacci level and down into the 141.10 to 141.70 area with next potential support near 140.00 where a round number and the 50-day average converge, followed by 138.10 its next retracement test. RSI under 50 and falling confirms downward momentum increasing.
EURJPY is still trending sideways between 121.50 and 124.15 recently trading in the 122.60 to 123.10 area. RSI drifting toward 50 indicates momentum downshifting from upward to sideways.
USDCAD is moving into a sideways range having bounced up off $1.3170 a higher low but running into resistance at a lower high near $1.3270 short of $1.3300 a Fibonacci level.