Indices bounced up off support late last week, but didn’t get very far and by late Friday were starting to trend lower again by the end of the week. This week could start off choppy with indices still falling back from their summer highs in what looks like a seasonal correction. Currencies may also be active with EUR breaking down against USD and GBP still trying to find its footing after a big selloff.
Asia Pacific indices
Australia 200 continues to roll over trading on its 50-day near 5,430. RSI slipping under 50 signals momentum turning downward. Next potential support near 5,400 then 5,350.
Hong Kong 50 has failed to retake 23,410 a Fibonacci level confirming a new downtrend underway and a double top in place. Initial support possible near 23,300 then 23,100 and then 22,900. RSI under 50 confirms downward momentum.
Japan 225 continues to bounce around between 16,675 and 17,000 recently trading near 16,890. RSI range bound between 40 and 60 confirms sideways momentum.
North American and European Indices
US 30 continues to bounce around the 18,000 to 18,360 range below its 50-day average recently popping up from near 18,080 toward 18,260 before slumping back toward 18,140. RSI remains below 50 suggesting this may be an upward trading correction.
US NDAQ 100 found support at a higher low near 4,755 and has bounced back up through 4,800 toward 4,810 and a test if its 50-day average with next potential resistance near 4,845 then 4,900. RSI under 50 suggests this could be a trading bounce within an emerging downtrend.
US SPX 500 held 2,100 round number, Fibonacci and flat neckline support and is bouncing around between 2,130 and 2,145 to retest rising neckline resistance which has held so far. Next upside test at the 50-day average near 2,160.
UK 100 successfully retested 6,925 a previous breakout point as new support and has resumed its uptrend rallying back up though 7,000 and on toward 7,020 with double top resistance in place ner 7,110. RSI trending higher confirms upward momentum.
Germany 30 has rallied back up from 10,440 toward 10,600 as it continues to bounce around between 10,300 and 10,700 around its 50-day average. RSI near 50 confirms sideways trend.
Gold continues to stabilize between $1,250 round number and Fibonacci support and resistance at its 200-day average near $1,262. RSI still oversold indicates it may continue to pause in the near term and could rebound as downward pressure eases.
Crude Oil WTI has regained $50.00 after a successful test of $49.00 Thursday kept its uptrend intact. Recently trading near $50.90 with next potential resistance near $51.45.
US Dollar Index has paused in the 97.50 to 98.00 range to consolidate recent gains and work off an overbought RSI. Next potential support in a pullback near 97.00 with next potential resistance near 98.50..
EURUSD remains under pressure again with resistance falling toward $1.1030 from $1.1060 and the index breaking down through the big $1.1000 round number. RSI indicates downward momentum still increasing. Next potential support near $1.0950 then $1.0915.
GBPUSD is sending mixed signals. A deeply oversold RSI suggests potential for a rebound while a symmetrical triangle forming between $1.2080 and $1.2380 indicates a pause within a downtrend and a retest of $1.2000 still possible. The pair has recently dropped back from $1.2260 toward $1.2180.
NZDUSD has started to slip back again after an attempt to rally up off $0.7000 faltered near $0.7120 well short of $0.7195 its recent breakdown point. Initial support possible near $0.7080
AUDUSD is starting to pick up again, clearing $0.7600 and its 50-day average and then retesting them as new support. RSI nearing 50 where a breakout would confirm an upswing with next potential resistance near $0.7700 then $0.7730.
USDSGD is breaking out again, driving up through $1.3800 and on through $1.3880 which may become support and then on toward $1.3910. Although a test of the $1.4000 round number appears within reach an overbought RSI suggests resistance could hold somewhere between here and there.
USDJPY keeps creeping higher with support moving up toward 103.80 and the index advancing on 104.40 with next potential resistance between 105.00 and 105,15 near a round number and Fibonacci level. RSI indicates upward momentum intact.
GBPJPY remains in a downtrend but has stabilized in the 126.70 to 127.50 area within a wider 124.70 to 128.60 range. RSI suggests downward momentum may have peaked.
EURJPY has settled into a channel between 114.00 and 115.80 trading below 115.00 near 14.30. RSI lipping under 50 suggests momentum starting to turn back downward. Next potential support near 112.80.
USDCAD continues to roll over, with resistance dropping toward $1.3220 and the pair falling toward $1.3130 with next potential support at is 50-day average near $1.3060. RSI testing 50 where a breakdown would confirm a downturn in momentum.
USDMXN continues to stabilize in the 18.75 to 19.10 area recently sitting just below 19.00. RSI hae levelled off near 40 to indicate the recent downdraft has ended and its underlying uptrend remains intact for now. Next potential support near 8.56