US indices and USD appear to be levelling off leaving me wonder why JPY continues to retreat relative to USD, EUR and CAD. The Yen is looking oversold and it wouldn’t take much to send it into correction mode. Crude oil has staged a 5% rebound today pulling CAD and MXN along for the rice
Asia Pacific Indices
Australia 200 is sending mixed signals. A lower high near 5,400 and the RSI stuck under 50 look bearish but holding above its 200-day average near 5,280 level looks encouraging. Next support near 5,200 with next resistance on a breakout possible near 5,460 then 5,500.
Japan 225 continues to climb, rallying up from 17,660 into the 17,780 to 17,830 range with next resistance in the 18.000 to 18.025 area between a round number and a 62% retracement of the previous downtrend. RSI confirms upward momentum increasing.
Hong Kong 50 appears to be stabilizing following a selloff with a double bottom in the RSI indicating downward pressure reaching its limit. Support has moved up from 22,000 to 22,220 with the index trading up into the 22,310 to 22,380 area with next resistance possible near 22,500 and 22,725.
North American and European Indices
US 30 is starting to drop back in a normal trading correction. An overbought RSI suggests the recent rally may have been too quick and that 19,000 round number resistance could hold for now. Recently falling from 18,910 toward 18,865 next support appears near 18,725.
US NDAQ 100 is on the rebound, regaining 4,740 in a rally up from 4,700 toward 4,780. Next potential resistance at the 50-day average near 4,815. RSI holding 40 suggests momentum shifting from downward to neutral.
US SPX 500 is creeping higher within a 2,150 to 2,185 trading range with support rising toward 2,168 and initial resistance near 2,175 and 2,190. RSI suggests upward momentum starting to increase again.
UK 100 has paused above 6,700 support with a higher low in the RSI suggesting the recent correction may be ending. Recently trading near 6,790, initial resistance on a bounce appears near 6,820 then 6,900 and the 50-day average.
Germany 30 is starting to backslide having faltered at channel resistance near 10,800 while RSI levelling of near 60 suggests the recent upswing has ended. The index has dropped back into the 10,660 to 10,740 area holding above the 50-day average near 10.540.
Gold appears to be base building in the $1,220 to $1,232 range after successfully testing Fibonacci support near $1,210. An oversold RSI and a positive divergence suggest recent downward pressure starting to weaken and a trading bounce possible.
Crude Oil WTI is back up above its 200-day average near $43.25 confirming Monday’s dip toward $42.25 was a bear trap washout. The price has moved back up above the middle of its $40-$50 range trading between $44.50 and $45.50 with next resistance near $46.00 then the 50-day average near $47.00.
Copper is still in correction mode with RSI still really overbought. The metal price is trading between $2.42 and $2.57 a Fibonacci level recently near $2.50 with initial resistance near $2.52 and initial support near $2.48.
US Dollar Index has paused near the 100.00 big round number to digest recent gains. More resistance possible near 100.55 a previous peak then a measured 101.00. Overbought RSI and a negative divergence suggest potential for a downward correction with support possible near 99.00 then 98.50.
EURUSD successfully retested support at $1.0700 its 2016 calendar year low and appears to be trying to stabilize between there and $1.0810 recently trading near $1.0720 with initial resistance near $1.0750. Oversold RSI suggests potential for a pause or bounce following a big decline.
GBPUSD continues to struggle with $1.2500 round number resistance trading between $1.2390 and $1.2440. RSI bouncing around 50 indicates a sideways trend emerging. Next support near $1.2355 with next resistance at the 50-day average near $1.2640.
NZDUSD keeps retreating with resistance falling toward $0.7120 and the pair falling toward $0.7080 with next potential support in the $0.7000 to $0.7020 area where a round number and the 200-day average cluster. RSI confirms downward pressure increasing.
AUDUSD continues to attract support above the $0.7500 round number and its 200-day average bouncing toward $0.7550 but it needs to retake $0.7585 to call off a breakdown and signal the start of a bounce that could challenge the 50-day average near $0.7615.
USDSGD appears to be levelling off near $1.4160 short or $1.4200 and looks vulnerable to a correction with RSI overbought again. Initial pullback support possible near $1.4065 then the $1.4000 round number.
USDJPY has cleared 109.00 completing a 38% Fibonacci retracement and is trading near 109.20 with the 110.00 round number resistance level approaching. An overbought RSI suggest potential for a correction with initial support possible near 108.70 then 108.00.
GBPJPY has cleared 135.00 advancing on 135.80 with next potential resistance near 136.50. RSI is getting really overbought suggesting the pair may be reaching and a correction possible back toward 134.80 or 133.90.
EURJPY keeps advancing, driving up off 116.00 a former channel top that has become support into the 116.70 to 117.10 area with next potential resistance near 118.35 a 38% retracement of its previous downtrend. Rising RSI confirms upward momentum increasing.
USDCAD paused near $1.3570 Fibonacci resistance and has started to roll over taking out $1.3500 on its way back into the $1.3450 to $1.3480 zone. Next potential support ner $1.3375. RSI rollover suggests a downward correction starting.
USDMXN has been knocked down from a lower high near 20.75 through 20.35 a Fibonacci level and on toward 20.20 with its next downside test near 20.00. An overbought RSI and negative divergence suggest potential for a corrections.