Chart Signals: mixed action as markets stabilize

Although several markets remain under pressure, particularly stocks, other markets have levelled off today. We’ve see a lot of inside consolidation days and markets starting to reverse away from Friday’s extremes but at the same time weaker than Friday’s closes so we may still see more swings today ad markets try to regain their footings and establish new technical levels.

Although several markets remain under pressure, particularly stocks, other markets have levelled off today. We’ve see a lot of inside consolidation days and markets starting to reverse away from Friday’s extremes but at the same time weaker than Friday’s closes so we may still see more swings today ad markets try to regain their footings and establish new technical levels. 

Asia Pacific Indices

Australia 200 remains under pressure sliding toward 5,040 and resistance falling from near 5,140 toward 5,060. Next potential support appears at the 5,000 round number which converges with a Fibonacci level.

Japan 225 has established support at the 15,000 round number up from 14,830. The index has moved back up into the 15,080 to 15,170 area with next potential resistance near 15,350.  

Hong Kong 50 remains stuck below 20,000 but appears to have established support above 19,695 a Fibonacci test with next support near 19,530 and next resistance near 20,210 a Fibonacci leve.

 

North American and European Indices

US 30 continues to trend lower falling from near 17,370 toward 17,090 breaking its 200-day average near 17,245 along the way. Next potential support near the 17,000 round number.

US NDAQ 100 is falling again but at a slower pace dropping from a lower high near 4,260 toward 4,185 with next support after that possible near 4,100 a Fibonacci test.

US SPX 500 broke Friday’s intraday low near the 2,000 round number dropping down toward 1,989 before bouncing back. Initial resistance at its 200-day average near 2,018 which may become initial resistance.

UK 100 spent most of the day bouncing around the 6,000 round number trading between 5,970 and 6,030 with next resistance near 6.070 and 6,120 and next support near 5,830 then 5,720. 

Germany 30 is coming off an inside day, where it digested Friday’s losses in the 9,200 to 9,600 range. Am early rebound faltered and the index finished the day in the 9,230 to 9,320 area.

Commodities

Gold ended up having an inside consolidation day faltering near $1,334 and dropping back into the $1,318 to $1,326 range. It remains above its previous $1,314 breakout point and below Friday’s $1,356 high.  

Crude Oil WTI broke its 50-day average near $46.30 having dropped back from $47.50 but found support above $45.00 near $45.40 and rebounded toward $45.90. RSI bouncing between 40 and 60 but under 50 suggests a downswing underway within a sideways trend. 

FX

US Dollar Index is building on Friday’s rally trading above last week’s close near 95.75 and driving into the 96.20 to 96.70 area testing Friday’s intraday high with next resistance possible near a measures 98.50 having already cleared 96.50.

EURUSD has slumped back under the $1.1000 round number after resistance came in at the 200-day average near $1.1100. Next downside support possible at Friday’s intraday low near $1.0920 which has held so far.

GBPUSD remains under pressure dropping back under $1.3500 and falling into the $1.3140 to $1.3240 area with more support possible at the $1.3000 round number. RSI getting oversold suggests potential for a trading bounce sometime soon.

NZDUSD is getting hammered for a second straight day with resistance falling toward $0.7100 and $0.7000 support starting to falter with the pair testing $0.6980. Next potential support near $0.6960 with initial resistance possible near $0.7020 a Fibonacci level.

AUDUSD has stabilized above its 200-day average near $0.7285 trading in the $0.7330 to $0.7410 range between Friday’s close near $0.7460 and Friday’s intraday low. Initial resistance at the 50-day average near $0.7420.

USDSGD is bouncing around its 50-day average near $1.3600 trading between $1.3545 and $1.3650 having rallied up out of a double bottom near $1.3340. RSI back above 50 indicates momentum turning upward. Next resistance possible near $1.3700. 

USDJPY has stabilized in the 101.40 to 102.50 range back above the 100.00 round number but below its 103.60 recent breakdown point suggesting a pause within an downtrend.

GBPJPY has dropped back under 140.00 trading below Friday’s close is sliding from near 138.00 toward the 133.50 to 134.80 area, but it continues to hold Friday’s intraday low near 133.90 so far. Oversold RSI suggests potential for a trading bounce. 

EURJPY held 110.00 round number support and has bounced back into the 111.30 toe 112.30 range with next potential resistance near 115.45 its previous low. Oversold RSI suggests potential for an upward trading correction. 

CADJPY has bounced back up into the 77.50 to 78.00 area having traded down toward 76.20 last week. Next bounce resistance possible near 78.60 then the recent breakdown point near 79.15.