Capital continues to flow out of defensive havens back into risk markets. JPY is underperforming relative to other major currencies while GBP is soaring against its peers following a successful vote on a key Brexit bill and rising inflation ahead of Thursday’s BOE meeting. NZD has spiked upward on a poll showing the incumbent National Party back in the lead. Indices continue to benefit from traders more willing to take on positions in risk markets.
Asia Pacific Indices
Australia 200 has popped back up above 5,725 its 50 and 200-day averages into the upper half of a 5,655 to 5,800 trading range. RSI back above 50 signals momentum turning back upward but more work needed to signal a breakout.
Japan 225 is breaking out of a base today, clearing 19,700 then 19,795 a Fibonacci level on its way toward 19.855. Net potential resistance near 19,900 then the 20,000 big round number. Rising RSI confirms increasing upward momentum.
Hong Kong 50 is still bumping up against 28,000 with additional resistance in place near 28,190 where a retest could end in a breakout or a double top. Falling RSI indicates slowing upward momentum. Next potential support near 27,840 in a pullback.
North American and European Indices
US 30 has regained 22,000 and continues to advance, climbing toward 22,115. Rising RSI confirms increasing upward momentum. Next potential resistance near 12,225 the August high where a test could end in a double top or a big breakout.
US SPX 500 is retesting is August peak near 2,492 which could end in a major breakout or a double top. RSI has broken out of a downtrend to signal momentum turning upward while the index has already retaken 2,482. Next potential resistance near the 2,500 round number then a measured 2,518.
US NDAQ 100 is bumping up against the 6,000 round number again where a breakout would complete an ascending triangle but a failure would complete a triple top. Twice today so far the index has probed 6,00 but been unable to seriously break through. The RSI recently broke out of a downtrend to confirm accelerating upward momentum. Next potential resistance near a measured 6,100 on a breakout with initial support in place near 5,970.
UK 100 remains stuck near the middle of a 7,300 to 7,500 trading range, dropping back from 7,450 to retest its 50-day average near 7,400 with nest support near 7,360. RSI steady near 50 confirms sideways momentum.
Germany 30 continues to climb, clearing 12,500 and advancing on 12,515. Rising RSI confirms increasing upward momentum. Next potential resistance near 12,555 then 12,670 where it set a lower high in July.
Gold continues its trading correction with RSI falling away from 70, and resistance dropping toward $1 328 from $1,342. The metal price held $1,322 a common 23% retracement of its previous uptrend with next potential support near $1,300 a round number and 38% retracement.
WTI crude oil appears to be stabilizing between its 50-day average near $47.40 and its 200-day average near $49.20, recently trading near $48.25. RSI bouncing around between 40 and 60 indicates a sideways trend with the oscillator back above 50 indicating continuing underlying accumulation through this consolidation phase.
FX
US Dollar Index still appears to be building a base between 91.00 and 92.00 having completed a bullish Morning Star candle pattern over the last three days. Next resistance on a breakout possible near a measured 93.00.
EURUSD remains under pressure following the completion of an Evening Star candlestick top. Resistance dropping back toward $1.2000 has been confirmed on a retest with the pair trading near $1.1960. Next potential support near $1.1865 a previous support/resistance level.
EURGBP is breaking down today, taking out 0.9070 a Fibonacci level then 0.9000 on its way toward 0.8990. RSI confirms momentum accelerating to the downside. Next potential support near 0.8925 a 38% retracement of the previous uptrend.
GBPUSD is breaking out today, clearing $1.3225 its previous high on its way from $1.3160 toward $1.3290. Next potential resistance near $1.3340. RSI confirms accelerating upward momentum but is approaching overbought territory.
NZDUSD has turned upward again, clearing $0.7275 then $0.7300 with next potential resistance near $0.7340 then $0.7385. RSI breaking out over 50 confirms momentum turning upward.
AUDUSD remains in an uptrend holding above the $0.8000 round number while rising RSI indicates continuing accumulation. The pair continues to struggle, however, with resistance near $0.8070 then $0.8125.
USDSGD continues to climb up out of a Morning Star back, with support rising toward $1.3460. The pair has been trading near $1.3460 but it needs to retake $1.3500 to confirm the start of a new uptrend.
USDJPY continues to rebound but so far gains have been contained by 110.00 and 50 on the RSI. Should these levels be overtaken, it would signal a bigger upturn starting with next resistance near 110.25 and 110.65. Should resistance at these levels hold, it would indicate recent gains as a trading bounce within an ongoing downtrend with initial downturn support near 109.25 then 108.75.
GBPJPY is breaking out today, blasting through its 50-day average near 144.00 then rallying up through 145.00 and on toward 146.20. RSI confirms increasing upward momentum but is approaching overbought territory. Next potential resistance near 146.75 then 147.65.
EURJPY continues its rally up off of 130.00 with support rising toward 130.65. The pair is retesting 131.85 resistance which could end in a breakout or a double top. Rising RSI confirms increasing upward momentum. Next potential resistance on a breakout near a measured 133.70.
USDCAD continues to trade between $1.2035 and $1.2200 consolidating recent losses and working off an oversold RSI. So far this looks like a pause within an ongoing downtrend. Next support near the $1.2000 round number with next resistance near $1.2250.
