US markets and MXN rallied Tuesday with traders anticipating a Clinton victory although they closed down from their highs of the day indicating many are still taking a wait and see approach having been burned by Brexit.
Resource Dollars like CAD, AUD and NZD outperformed indicating some risk on sentiment while JPY, EUR and GBP underperformed the greenback.
Markets paused Tuesday with traders waiting for the election results. We could see big swings on tonight’s results but the direction is going to depend more on who wins the election meaning that we could see trends continue or major reversals. In today’s notes, I have identified potentially significant technical levels in both directions.
Asia Pacific Indices
Australia 200 continues its rebound clearing its 200-day average near 5,275 and advancing on 5,300 with next potential resistance at its 50-day average near 5,365 then 5,450. Support moves up from near 5,200 toward 5,255.
Japan 225 continues to climb toward the top of a 16,815 to 17,430 trading channel between two Fibonacci levels. Next potential resistance near 17,795. Initial support levels near 17,075 and 17,000.
Hong Kong 50 is bumping up against 23,000 where a breakout would signal the start of a new upswing with next potential resistance near 23,405 a Fibonacci level then 23,635. Downside support in place near 22,770 then 22,470.
North American and European Indices
US 30 has broken out of an 18 200 to 18,300 trading range near its 50-day average and also out of a downtrend, clearing 18,345 and retesting it as support with next potential resistance near 18,435 and 18,545. Next potential support near 18,070 then the 18,000 round number.
US NDAQ 100 has rallied up off 4,740 into the 4,790 to 4,825 range near its 50-day average with next potential resistance near 4,900 and 5,000. Downside support possible near 4,710 then 4,650 and 4,595 a previous breakout point.
US SPX 500 has regained 2,100 and 50 on the RSI (barely) signalling an upturn but it really needs to clear its 50-day average near 2,150 to signal an upturn within a wider 2,000 to 2,200 trading range. Support moves up toward 2,120 from the 200-day average near 2,090.
UK 100 continues to climb, advancing on 6,860 with support rising toward 6,800 from 6,710 this week with more possible near 6,650. Upside resistance possible near 6,895 then 50-day average then 9,925 and 7,000 on a rally.
Germany 30 has regained 10,500 but is struggling with resistance at its 50-day average near 10,555 and 50 on the RSI, both lower highs. Next resistance possible in the 10,700 to 10,745 area with support near 10,400 then 10,335 and 10,205.
Gold is sitting on $1,275 just below its 200-day average and a Fibonacci level in the $1,278 to $1,282 area following a pullback. Next downside support levels near $1,260 then $1,250 and $1,242. Upside resistance possible near $1,300 where a round number, Fibonacci level and 50-day average converge then $1,308.
Crude Oil WTI has stabilized just below $45.00 near the middle of a wider $40-$50 trading channel. Currently trading between its 200-day average near $43.00 and its 50-day average near $47.00.
US Dollar Index is trading just below 98.00 and the middle of a 97.00 to 99.00 trading channel. More support possible at the 50-day average near 96.60 with more resistance possible closer to the 100.00 round number.
EURUSD has found its footing in the $0.1000 to $1.1050 area after getting knocked back from its 50-day average near $1.1111. More support in place near $1.0960 then $1.0900 with next upside resistance near $1.1185 and the 200-day average.
GBPUSD has slipped back under $1.2400 and 50 on the RSI signalling a downswing with the pair sliding toward $1.2370. Next potential support near $1.2300 then $1.2255 with next resistance near $1.2500.
NZDUSD continues to advance rallying up off a higher low near $0.7320 toward $0.7380 with next potential resistance on trend near $0.7410 then $0.7475. Next support in a pullback possible near $0.7295 then the 50-day average near $0.7235.
AUDUSD is breaking out of an ascending triangle today, clearing $0.7725 and advancing on $0.7750 with next potential resistance near $0.7820 then $0.7930. RSI confirms upward momentum increasing. Support in place near $0.7650 then the 50-day average near $0.7610 and $0.7555.
USDSGD continues to bounce around in a sideways range between $1.3800 and $1.4000 with resistance near $1.3920 and $1.3970 and support near $1.3880 and $1.3820.
USDJPY continues to advance on resistance in the 105.00 to 105.25 range between a round number and a Fibonacci level with its next upside test at the 200-day average near 106.60. Downside support in a pullback possible near 103.70 then the 50-day average near 103.00.
GBPJPY continues to climb, clearing 130.00 and testing its 50-day average near 130.40. RSI above 50 and rising confirms upward momentum increasing. Next potential resistance near 132.95 a Fibonacci level then the 135.00 round number. Support in place near 128.40 then 126.40.
EURJPY is testing the top of a 112.00 to 116.00 trading channel trading near 115.80. Initial support possible near 115.00 followed by the 50-day average near 114.35. Next potential resistance on a breakout near 116.00 then 118.35 a Fibonacci test.
USDCAD is starting to break down, falling under $1.3310 a Fibonacci level. RSI is testing 50 where a breakdown would confirm a downturn. Next support appears near $1.3180 and the 50-day average with next resistance near $1.3390 and $1.3425.
USDMXN has broken uptrend and Fibonacci support in the 18.50 to 18.60 range falling toward 18.30. Next potential support on a breakdown appears near 18.15 then 17.85 and 17.00. Upside tests in a rally appear near 18.82 and 19.23 both Fibonacci levels then 20.00.