Chart Signals: Gold and oil continue to roll over

Gold and oil continue to fall following recent bearish signals with major indices also drifting lower and currency markets generally holding steady.

Gold and oil continue to fall following recent bearish signals with major indices also drifting lower and currency markets generally holding steady.

Asia Pacific Indices

Australia 200 remains stuck in a 5,485 to 5,600 trading range and it’s unclear if an ascending triangle or a double top may be forming. RSI dropping toward 50 indicates upward momentum fading but it hasn’t been broken yet. 

Japan 225 is still trending sideways between 16,400 and 16,675, recently trading near 16,500. RSI sitting on 50 confirms sideways momentum.

Hong Kong 50 held uptrend support near 22,790 for now and has bounced back toward 22,850, but falling RSI suggests this rebound could be contained below 23.00 round number resistance. Next support possible near 22,585.

North American and European Indices

US 30 has slipped back under 18,500 toward 18,430 falling within an 18,360 to 18,660 range confirming a double top in place. RSI testing 50 where a break would signal a downturn in momentum.

US NDAQ 100 is starting to roll over, breaking under 4,800 and falling toward 4,775 with next potential support near 4,740 then 4,700. RSI falling away from 70 signals a correction starting.

US SPX 500 is testing support at the bottom of a 2,170 to 2,190 trading channel with next potential support on a breakdown near 2,145 where a prior low and the 50-day average converge. RSI falling toward 50 indicates a downturn pending.

UK 100 appears to be finding support near 6,800 having bounced up from 6,780 toward 6,830. The current uptrend remains intact above the 50-day average near 6,630. Upside resistance in place near 6,950. 

Germany 30 is having a bit of a retrenchment dropping back to test 10,500 as upward momentum eases. It remains in an uptrend through this correction above its recent low near 10,400 with a golden cross still in place.

Commodities

Gold remains under pressure falling under $1,325 to confirm Wednesday’s breakdown under $1,330 and its 50-day average which have become new resistance. RSI under 50 and falling confirms downward momentum increasing with next potential support near $1,310 then $1,300 a round number and Fibonacci cluster.

Crude Oil WTI continues to retreat following completion of an Evening Star earlier this week, sliding toward $46.00 with next potential support in the $44.80 to $45.00 area between a Fibonacci level and a round number. Initial resistance falls toward $46.70.

FX

US Dollar Index is sitting steady near 94.75 still in the lower half of a 94.00 to 96.00 trading range. RSI suggests downward pressure levelling off.

EURUSD is holding steady near $1.1280 as it continues to bounce around in a $1.1200 to $1.1400 trading range.

GBPUSD has encountered some resistance near $1.3230 with more possible near $1.3315 a 23% retracement of the post-Brexit selloff. RSI near 50 and support coming in at a higher level near $1.3170 indicates base building continues. Additional support possible near $1.3130 or $1.3030. 

NZDUSD is sitting on $0.7300 as an ascending triangle of higher lows below $0.7350 continues to emerge. RSI suggests upward momentum flattening out for now. Initial correction support possible near $0.7260 then $0.7200.

AUDUSD remains in an uptrend with the pair climbing up off a higher low near $0.7580 toward $0.7620 with RSI holding 50 confirming underlying momentum. Initial resistance possible near $0.7645 then $0.7700.

USDSGD has started to drop back toward $1.3525 after running into resistance near $1.3555 setting another lower high that keeps its long-term downtrend intact for now. RSI topping out near 60 suggests a sideways trend possible between $1.3340 and $1.3640 may be emerging.

USDJPY continues to attract support above 100.00 advancing on 100.60 while RSI trending up toward 50 indicates downward pressure easing. Next resistance possible near 100.90 then 102.00.

GBPJPY has paused near 132.50 having encountered some resistance near 133.00 in what looks like a normal pause within an emerging uptrend.

EURJPY continues to base build around 113.00 in a 112.00 to 115.00 range as RSI rising toward 50 indicates downward pressure easing.

CADJPY is holding steady near 77.75 within a 77.00 to 79.00 trading range where it has been base building.

USDCAD is holding steady between $1.2900 and $1.2940 with RSI still under 50 indicating its broader downtrend still intact. Round number and Fibonacci resistance remains in place near $1.3000 with next support near $1.7750.