It’s been a big day for major indices particularly in Europe and Asia Pacific where markets continue to catch up to the gains made recently in the US.
It’s been a big day for major indices particularly in Europe and Asia Pacific where markets continue to catch up to the gains made recently in the US. AUD remains under accumulation as traders continue to plow back into risk markets but NZD remains stuck in a sideways trend. GBP has started to break down again against both USD and JPY.
Asia Pacific Indices
Australia 200 remains under accumulation advancing on 5,550 after a correction to ease overbought conditions ended in a higher low near 5,450. Upside resistance appears at the recent high near 5,600 then 5,720 a resistance level that dates back to last summer.
Japan 225 continues to advance, trading above 16,675 a Fibonacci level which has become higher support. Resistance has emerged near 16,760 with more possible near the 17,000 round number then the 200-day average near 17,155.
Hong Kong 50 keeps on climbing, clearing 22,500 and driving on toward 22,620 with next potential resistance near the 23,000 round number. RSI getting overbought again suggests potential for a correction back toward 22,325.
North American and European Indices
US 30 continues to drift sideways around 18,500 trading between 18,350 and 18,650. Lower highs in the RSI indicator suggest momentum downshifting from upward to neutral.
US NDAQ 100 reached another new high testing 4,800 with next resistance possible near a measured 4,900 then the 5,000 round number. RSI still overbought suggests potential for a retrenchment possibly back toward 4,740 a recent breakout point.
US SPX 500 is bumping up against 5,180 with more resistance possible near the 5,200 round number. RSI drifting back toward 50 suggests upward momentum easing and a sideways consolidation underway above 2,140.
UK 100 is breaking out today, clearing 6,800 and advancing on 6,880 with next potential resistance possible near 6,700 where a round number and measured move converge. RSI nearing overbought but confirms upward momentum still increasing.
Germany 30 is breaking out of a trading channel today, clearing 10,500 which may become higher support and rallying into the 10,660 to 10,710 area with next potential resistance at the December high near 10,880.
Gold is sending mixed signals as it consolidates between $1,315 and $1,375. A double top suggesting the recent uptrend may be ending has been offset by a higher low near $1,330 indicating continued accumulation
Crude Oil WTI continues to bounce up off $40.00 round number support but appears to be pausing for now in the $42.20 to $43.20 area with next potential resistance near $44.85 a Fibonacci level. RSI gaining on 50 confirms recent downward correction momentum fading.
US Dollar Index is holding steady above 96.00 consolidating its recent rally up off a higher low near 95.00 but unable to mount another assault on resistance in the 97.00 to 97.50 area.
EURUSD is sitting on $1.1100 as it continues to trend sideways between $1.1000 and $1.1200 with RSI on 50 confirming sideways momentum.
GBPUSD dipped below $1.3000 briefly but found support near $1.2980 for now. RSI below 50 and falling however suggests downward momentum increasing and a retest of the July low near $1.2785 still possible. Initial rebound resistance possible near $1.3125.
NZDUSD held higher support near $0.7100 and its 50-day average but has run into resistance at a lower high near $0.7195 also a Fibonacci level forming a symmetrical triangle within a $0.6900 to $0.7300 sideways channel.
AUDUSD remains under accumulation advancing into the $0.7640 to $0.7690 area as an ascending triangle continues to form below $0.7700 with next potential resistance near $0.7840 the April peak. Rising RSI confirms upward momentum increasing.
USDSGD is trying to climb up out of a double bottom near $1.3350 but has encountered initial round number resistance near $1.3500 and the 50-day average. RSI stuck below 50 indicates previous downtrend may not be over yet.
USDJPY has dropped back from near 102.30 toward 101.80 while a lower high in the RSI below 50 indicates the recent downtrend may be reasserting itself following a bounce up off of 100.60.
GBPJPY remains under distribution with RSI under 50 and falling indicating downward momentum increasing. Resistance falls toward 132.70 with next potential support near 132.30 then the 130.00 round number and the July low near 128.60.
EURJPY appears to be base building in the 112.00 to 114.00 area but RSI continues to trend downward suggesting this could be a pause within an ongoing downtrend. Next resistance near 114.80 with next support near 111.40.
CADJPY is holding steady near 77.60 above strong support near 77.00. RSI suggests downward momentum levelling off and base building underway with initial resistance near 78.00 then 80.00.
USDCAD continues to struggle with $1.3200 resistance but also remains in an uptrend with support rising toward $1.3110 from $1.3000. RSI drifting back toward 50 suggests upward momentum may be slowing.