We’re seeing a number of rallies getting underway with the US SPX 500 and Canada 60 breaking out in indices. WTI crude oil has turned upward along with gold and copper. USD appears to be peaking looking overbought and vulnerable to a correction relative to JPY, SGD and a number of resource currencies including CAD, AUD and NZD. GBP is also rallying today, especially relative to USD.
Asia Pacific Indices
Australia 200 is picking up again, retaking 5,365 a Fibonacci leve and its 50-day average, advancing on 5,385 with next potential resistance near4,465 then 5,500. RSI regaining 50 confirms momentum turning upward again.
Japan 225 continues its advance, retaking 18,000 in a rally up from 17,940 toward 18,150. RSI near overbought so a pause may be needed soon to digest recent gains.
Hong Kong 50 is starting to bounce back, trading in the 22,290 to 22,420 range following a successful retest of 22,000 support. RSI indicates downward pressure easing. Next resistance possible near 22,500.
North American and European Indices
US 30 is starting to climb again, advancing form near 18,860 toward 18,950 but remains stuck just short of the 19,000 round number digesting its post-election rally and working off an overbought RSI. Next support possible near 18,800 with next measured resistance on a breakout near 19,220 and next support near 18,780.
US NDAQ 100 has decided to take another run at 4,900 driving up off its 50-day average near 4,820 toward 4,860. Next potential resistance on a breakout at the 5,000 round number. RSI breaking out of a downtrend confirms momentum turning upward.
US SPX 500 has broken out over 2,190 to signal the start of a new upleg as it rallies up off 2,180 toward 2,198. Next resistance possible near 2,200 then a measured 2,290 with next support at the 50-day average near 2,145.
Canada 60 has a beautiful breakout underway today clearing 875 to complete an ascending triangle and signal the start of a new upleg on trend with next potential measured resistance near 920. The index has advanced toward 890 with initial resistance possible at the 900 round number. RSI indicates upward momentum increasing.
UK 100 has spent the day bouncing around between 6,750 and 6,820 within a bigger 6,700 to 6,925 trading channel. RSI suggests downward pressure starting to ease but it still needs to retake 50 to signal an upturn.
Germany 30 is holding above its 50-day average near 10,540 bouncing from near 10,600 toward the 10,680 to 10,720 area. Overall, price action and the RSI suggest the index remains in a sideways trend between 10,000 and 10,880.
Gold continues to rebound from a successful test of $1,200 support last week clearing $1,211 a Fibonacci level and retesting it as support with next potential resistance near $1,218 then $1,230. A positive RSI divergence indicates downward momentum slowing with an oversold RSI indicating room for a trading rebound.
Crude Oil WTI continues its upswing with RSI clearing 50 and the price clearing its 50-day average near $47.00 to signal momentum turning upward again. The price has advanced from near $46.20 toward $47.90 Support rises toward the average with next resistance possible near $48.60 then the $50.00 round number.
Copper has regained $2.50 and appears to be breakout out of a short term correction. Initial resistance possible near $2.54 then $2.57 both Fibonacci tests. RSI above 70 keeps price overbought increasing the potential for swings in both directions. Next support possible near $2.48 then $2.44.
US Dollar Index looks close to a near-term top having encountered resistance near 101.50 and slipping back toward 101.00. RSI overbought and rolling over suggests potential for a correction with next potential support near the 100.00 big round number.
EURUSD has a trading bounce underway trying to ease an oversold RSI. Support has emerged near $1.0575 and the pair has bounced back up into the $1.0590 to $1.0650 area with next potential resistance near $1.0700 the $1.0740 a 23% retracement of a recent downtrend.
GBPUSD remains under accumulation having attracted support at a higher low, rallying up from a $1.2320 to $1.2360 congestion area and rallying up into the $1.2450 to $1.2500 area just below a round number and its $1.2500 then the 50-day average near $1.2560.
NZDUSD has regained $0.7000 in a rebound along with its 200-day average as it rallies toward $0.7080 with support rising toward $0.7040. A higher low in the RSI suggests downward pressure starting to ease. Next potential resistance near $0.7105.
AUDUSD dipped down to test $0.7300 and has since rallied back up into the $0.7350 to $0.7380 range a potential bear trap bottom. Oversold RSI indicates potential for a trading bounce inti the $0.7390 to $0.7420 area initially.
USDSGD may be peaking with resistance emerging near $1.4290 and bouncing around between there and $1.4220. Really overbought RSI suggests potential for a trading correction with next support possible near $1.4120.
USDJPY is really overbought on the RSI and could be nearing a short term peak with a doji candle forming near 111.00 suggesting bulls and bears coming back into balance and potentially ready to tip the other way. Resistance has emerged near 111.40 with initial support in the 110.50 to 110.80 zone with next potential support at the 110.00 round number.
GBPJPY continues to climb, clearing 138.10 a Fibonacci level and advancing on 138.85 with next potential resistance at the 140.00 round number. RSI getting extremely overbought but still confirming the uptrend for now. A correction could take the pair back into the 126.30 to 137.20 zone where the current rally started.
EURJPY is breaking out today, clearing 117.50 to signal the start of a new upleg following a pause and advancing on 117.90 with next potential resistance near 118.35 a Fibonacci level and 118.90 the 200-day average. Rising RSI confirms upward momentum increasing.
USDCAD appears to have completed a double top near $1.3575 having slipped back under $1.3500 into the $1.3380 to $1.3440 zone with next potential support near $1.3300. RSI rolling over suggests upward momentum may have peaked and a downturn pending.