Chart Signals: Indices, CNH, JPY and resource currencies keep breaking down

Major indices continue to show signs of increased distribution not only in North American but increasingly among Asia Pacific markets as well, particularly the Australia 200 and Hong Kong 50. JPY is also in full retreat, falling relative to USD, EUR and GBP. CNH has broken down to another new low on trend against USD MXN broke down today against USD in pre-election trading while NZD, AUD and CAD also continue to fall.

Major indices continue to show signs of increased distribution not only in North American but increasingly among Asia Pacific markets as well, particularly the Australia 200 and Hong Kong 50. JPY is also in full retreat, falling relative to USD, EUR and GBP. CNH has broken down to another new low on trend against USD MXN broke down today against USD in pre-election trading while NZD, AUD and CAD also continue to fall. 

Asia Pacific Indices

Australia 200’s selloff is accelerating with the index following a break under 5,400 with a dive down toward its 200-day average near 5,265 before bouncing back toward 5,320. RSI under 50 and falling indicates downward pressure increasing. 

Japan 225 remains under accumulation, breaking through 176,425 a Fibonacci level and advancing on 17,500. Rising RSI confirms upward momentum increasing but nearing overbought territory suggests a correction possible. Next resistance possible near 17,795 with next support near 17,250. 

Hong Kong 50 continues its downtrend with the index under 23,410 and falling and the RSI under 50 and falling indicating a new downleg accelerating. Recently trading near 23,100 next potential support appears near 23,000 then 22,730. 


North American and European Indices

US 30 is bouncing around between 18,150 and 18,270 but it needs to retake 50 on the RSI plus its 50-day average and a downtrend resistance line near 18,275 to signal an upturn with next potential resistance near 18,300 a sideways channel top, otherwise it remains under distribution with a descending triangle forming above 18,000. 

US NDAQ 100 has levelled off in the 4,850 to 4,875 area but a bull trap top near 4,900 still sticks out like a sore thumb. RSI still trending down into the 40-60 area suggests momentum downshifting from upward to neutral. Next support possible near 4,800 then 4,740. 

US SPX 500 is still stuck below 2,150 the rising neckline of a head and shoulder top with initial support near 2,135 then 2,100 the flat neckline, a round number and the 23% Fibonacci retracement. RSI needs to retake to signal an upturn and call off the current distribution trend. 

UK 100 remains stuck below 7,000 but has bounced up off the bottom of a 6,925 to 7,110 trading range. RSI under 50 suggests momentum turning downward with next potential support in the 6,770-6,800 area. 

Germany 30 has stabilized in the 10,670 to 10,740 area down from 10,800 resistance but above support at the 50-day average near 10,555 followed by 10,500. RSI failing at 60 and rolling over suggests an emerging downtrend. 


Commodities 

Gold continues to trade near $1,268 and its 200-day average as its recovery trend up off $1,250 continues with next resistance possible near $1,274 then $1,282. RSI rising toward 50 indicates downward pressure easing. 

Crude Oil WTI has a key support test underway sitting on $49.00 and 50 on the RSI where breakdowns would complete a rounded top plus a double top and signal the start of a new downtrend with next potential support near $47.00 and the 50-day average. WTI remains unable to retake $50.00, a sign of weakness. 


FX 

US Dollar Index is testing 99.00 resistance but remains unable to get through and faces a big round number test near 100.00 if it can. An overbought RSI and a double top suggest recent uptrend overextended and peaking with a significant downward correction possible, perhaps bvack toward 98.50 or 97.60 initially. 

EURUSD is holding just above $1.0900 where a bounce has eased oversold conditions but it remains way short of the $1.1000 level it needs to clear to call off its current downtrend. More support in place near $1.0850 its recent low. 

GBPUSD is turning back upward having shrugged off a selloff earlier this week as a head fake and washout of weak hands. RSI above 30 and rising indicates downward pressure easing. Support has moved up toward $1.2170 with Cable advancing into the $1.2180 to $1.2260 area. Next potential resistance on trend near $1.2330 then $1.2460. 


NZDUSD continues to retreat with RSI indicating downward pressure growing after the pair completed the right shoulder of a head and shoulders top pattern. Resistance falls toward $0.7195 a Fibonacci level with next potential support in the $0.7000 to $0.7020 area. 

AUDUSD is sending mixed signals. It continues to fall away from $0.7725 trading near $0.7600 and its 50-day average, while RSI dipping under 50 confirms momentum turning downward. Still, it remains in an uptrend and an ascending triangle above $0.7555 support. 

USDSGD is rallying up off $1.3880 and appears to be taking another run at $1.4000 recently trading near $1.3950. RSI slipping back under 70 from overbought suggests upward momentum may have peaked and a trading correction looking increasingly possible. 

USDCNH is breaking out again today, clearing 6.7870 to a new high on trend trading near 6.7950 with 6.8000 looming ahead. RSI confirms upward momentum but is really overbought so a correction back toward 6.7575 a 23% retracement of the current advance remains possible. 

USDJPY is taking another run at resistance in the 105.00 to 105.25 area near a round number and 23% Fibonacci retracement, recently trading near 104.75. RSI confirms upward momentum increasing. Support rises toward 104.55. 

GBPJPY remains under accumulation advancing toward the top of an ascending triangle base near 128.60 recently trading near 128.20. RSI indicates downward pressure easing and an upturn pending. Next potential resistance on a breakout appears near 130.00 then the 50-day average near 131.75. 

EURJPY has an upswing underway with the pair clearing 114.00 and its 50-day moving average to move back into the upper half of a 112.00 to 116.00 trading range. RSI retaking 50 confirms and upswing underway. Initial resistance possible near 114.95 a Fibonacci level. 

USDCAD peeked above $1.3400 briefly and is trading just below it but is still holding well above its $1.3310 breakout point and Fibonacci support trading near $1.3380. RSI near 60 where a breakout would confirm a strengthening uptrend with next potential resistance near the $1.3500 round number. 

USDMXN is breaking out of a downtrend today in both the pair and the RSI, clearing 18.70 to signal the start of a new upswing with next potential resistance in the 18.90 to 19.00 range near its 50-day average and a round number. 

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