Some of the markets that have been hit the hardest in recent weeks have started to rebound, in particular JPY and gold. JPY pairs have completing Evening Star candle patterns indicating significant technical reversals over the course of three days. Overbought and oversold RSI conditions in a number of other markets also indicate the potential for significant trading corrections this week. Crude oil and related markets like CAD remain active around the big OPEC meeting.
Asia Pacific Indices
Australia 200’s latest rally appears to be stalling with the index failing to hold 5,500 and sliding back toward 5,460. Initial support in a correction appears possible near 5,435 then 5,400.
Japan 225 has levelled off in the 18,270 to 18,470 range. RSI turning back under 70 from overbought signals upward momentum weakening and a correction starting. The pair has been trading in the 18,250 and 18,370 with next potential support near the 18,000 round number.
Hong Kong 50 is climbing within a saucer bottom that has been forming between 22,000 and 23,000 and appears poised for a breakout. The RSI has retaken 50 to signal an upturn in momentum. Recently trading near 22,800 a breakout over 23,000 would confirm the start of an uptrend with next potential resistance near 23.160 then 23,410.
North American and European Indices
US 30 appears to be peaking, encountering resistance near 19,170 and dropping back into the 19,080 to 19,130 area with net potential support near the 19,000 round number. Overbought RSI indicates potential for a trading correction.
UK 100 continues to trade between 6,725 and 6,885 dropping from near 6,810 toward 6,780. RSI stuck below 50 suggests this may be a pause within a bigger downtrend that may be resuming.
Germany 30 tumbled today falling from near 10,700 toward 10,560. More importantly, the RSI fall back under 50 to signal a downturn in momentum. Next potential support near 10,500 then 10,420.
Gold appears to be washed out and is starting to recover. Following a bear trap dip under $1,280 and successful test of $1,172 Fibonacci support Friday, gold has started to recover rallying toward $1,194 with next potential resistance near $1,200 then $1,211 a Fibonacci level. Oversold RSI indicates potential for a bounce.
Crude Oil WTI has successfully tested $45.00 support popping up from $44.55 toward $46.35 with next potential resistance near $47.15 then $47.70.
Copper shot up to retest $2.74 resistance failing to break through again and has dropped back toward $2.65 to complete a double top. Ann overbought RSI and a negative divergence indicates potential for a correction with next support possible near $2.62 then $2.60.
US Dollar Index continues to roll over on both the pair and the RSI indicating the recent uptrend has peaked and a pullback starting. Resistance has dropped from 102.00 toward 101.50 and the index falling toward 101.30. Next downside support appears near 100.70 then 100.00.
EURUSD has successfully tested $1.0500 as support and started to recovery, rallying up toward $1.0600 with next potential resistance near $1.0685 a 23% retracement of its recent selloff. RSI still oversold, indicating potential for a significant trading rebound.
NZDUSD appears close to completing a saucer bottom having successfully tested $0.7000 round number and Fibonacci support. The pair is rallying up off its 200-day average near $0.7040 toward $0.7080. A breakout over $0.7100 would complete the base and signal an upturn with next potential resistance in the $0.7180 to $0.7200 area near the 50-day average and a Fibonacci level. RSI upturn indicates downward pressure easing.
AUDUSD’s upswing continues with the pair rallying form near $0.7420 support toward the $0.7470 to $0.7490 area. RSI advancing on 50 indicates downward pressure easing and an upturn pending. A breakout over $0.7500 would confirm the start of a new uptrend with next potential resistance near $0.7525 then $0.7585 the 200 and 50-day moving averages.
USDSGD is rolling over and appears vulnerable to a breakdown. Resistance has emerged near $1.4325 and the pair has dropped into the $1.4245 to $1.4270. Breakdown by the RSI under 70 from overbought and by the pair under $1.4200 would signal the start of a new downtrend with next potential support near $1.4120.
USDJPY is breaking down today, completing an evening star candle pattern to signal the start of a correction. Having peaked near 114.00 last week, the pair has broken down through 113.00 trading near 112.25 with next potential support near 111.25. resistance drops toward 112.35.
GBPJPY is completing an evening star candle pattern diving from 141.00 down through 140.00 and on toward 139.30 to signal a downturn with next potential support near 138.10 a Fibonacci level. RSI still overbought but rolling over indicates this pair increasingly vulnerable to a downturn.
EURJPY is starting to break down, completing an evening star top by falling away from 120.00 back into the 118.70 to 119.00 area to retest its 200-day average with next potential support near 118.35. RSI falling back under 70 confirms a downward correction starting.
USDCAD is starting to roll over, falling away from the $1.3500 round number into the $1.3400 to $1.3430 zone. RSI breaking down through 50 confirms momentum turning downward. Next potential support near $1.3365 then $1.3300 with next resistance near $1.3565.