Chart Signals: NZD and AUD rally

NZD has been in the spotlight today soaring following RBNZ news but AUD also has been attracting attention building on yesterday’s breakout. A downswing in the oil price has been dragging on CAD. USD weakness has enabled gold, EUR and GBP to advance.

NZD has been in the spotlight today soaring following RBNZ news but AUD also has been attracting attention building on yesterday’s breakout. A downswing in the oil price has been dragging on CAD. USD weakness has enabled gold, EUR and GBP to advance.

Asia Pacific Indices

Australia 200 continues to roll over, dropping back from a lower high near 5,565 back toward 5,525 with next potential support in the 5,485 to 5,500 zone between a Fibonacci level and a round number. A lower high in the RSI indicates upward momentum slowing.

Japan 225 has encountered some resistance in the 16,675 to 16,825 range between two Fibonacci levels. RSI remains in the 40 to 60 zone indicating a sideways trend continues.

Hong Kong 50 ran into resistance near 22,600 and has dropped back toward 22,460 in what looks like a normal trading correction of an overbought RSI. A negative divergence also suggests the recent uptrend may be tiring. Downside support possible near 22,325 a recent breakout point then 22,150.

North American and European Indices

US 30 has slipped back from 18,640 toward 18,480 and may have completed a short-term double top. RSI drifting back toward 50 indicates momentum downshifting from upward to neutral. Support possible near 18,360.

US NDAQ 100 ran into resistance near 4,800 and has started to drift back toward 4,775. Overbought RSI suggests potential for a correction with initial support possible near 4,740 then 4,700.

US SPX 500 is holding steady near 2,180 with next resistance near 2,185 then 2,200 and support near 2,165. RSI steady above 50 suggests a normal pause underway within an ongoing uptrend.

UK 100 has levelled off above 6,800 higher support trading in the 6,820 to 6,860 area with next potential resistance near 6,875 then 7,000. Index appears to be consolidating recent gains and working off a near-overbought RSI.

Germany 30 has paused in the 10,630 to 10,700 range digesting yesterday’s breakout rally over 10,500. RSI getting overbought so a pause or correction possible in the near term. Next upside resistance possible near 10,885.

Commodities

Gold continues to climb, rallying up off a higher low near $1,330 clearing $1,345 and advancing on $1,355 before settling back a bit. Next upside resistance possible in the $1,365 to $1,375 area. RSI holding 50 confirms underlying uptrend remains intact.

Crude Oil WTI had the rug ripped out from under it as an inventory increase knocked the price back from near $43.20 back into the $41.40 to $41.80 range although the price remains well above 200-day average and round number support near $40.00.

FX

US Dollar Index is rolling down from a lower high near 96.50 taking out 96.00 and dropping toward 95.40 with next potential support near 95.00 then 94.15. RSI failing at 50 and falling again confirms downward pressure building again.

EURUSD continues to rally up off its 200-day average, clearing its 50-day average near $1.1150 and advancing on $1.1190 with next potential upside resistance near $1.1225 then $1.1300. RSI holding 50 and rising confirms upward momentum intact.

GBPUSD popped back up above $1.3000 toward $1.3090 and back having completed a bear trap bounce up off $1.2950 yesterday. Next potential bounce resistance near $1.317

NZDUSD is bumping up against $0.7325, retesting its July high after popping up from $0.7195 Fibonacci support on the RBNZ news. RSI climbing up off 50 indicates upward momentum increasing. A breakout would complete an ascending triangle with next potential resistance near $0.7430 then the $0.7500 round number. 

AUDUSD remain well supported above $0.7700 its previous resistance level, confirming the completion of a bullish ascending triangle pattern. RSI confirms upward momentum increasing with net resistance possible near $0.7750 then $0.7840 the April high.

USDSGD is bouncing around between $1.3390 and $1.3420 keeping a floor near $1.3340 intact for not. Bounces may be contained initially by the 50-day average near the 41.3500 round number.

USDJPY is trading near 101.40 in a 100.00 to 102.50 range trying to decide whether it is ready to build a base for recovery or if this is another pause within an ongoing downtrend.

GBPJPY keeps drifting downward with falling RSI confirming downward momentum accelerating. The pair has dropped into the 131.60 to 131.80 zone with next potential support near the 130.00 round number then the July low near 128.55.

EURJPY has stabilized near 113.20 trading in a 112.00 to 113.75 range. RSI flattening near 40 suggests downward pressure levelling off.

CADJPY is holding steady near 77.50 as it attempts to base build in the 76.75 to 78.25 range.

USDCAD held support at its 50-day average and the $1.3000 round number bouncing back toward the $1.3030 to $1.3070 area with next resistance near $1.3115. RSI holding near 50 suggests a downturn still pending confirms downturn in momentum.