Chart Signals: Oil retreats as markets retrench

Crude oil has been knocked back a bit on what essentially looks like a day of pausing and consolidation of the big moves that kicked off this week in world markets.

Crude oil has been knocked back a bit on what essentially looks like a day of pausing and consolidation of the big moves that kicked off this week in world markets. 

Asia Pacific Indices

Australia 200 remains under accumulation but appears to be pausing near 5,400 with resistance emerging near 5,415 and more possible at the May high near 5,440. RSI increase indicates upward momentum still increasing.

Japan 225 ran into resistance near 16,575 and has dropped back to retest 16,328 a Fibonacci level where support has been coming in with more possible at the 50-day average near 16,215.

Hong Kong 50 has started to drop back in a normal trading correction after running into channel top resistance near 21,450. The index has slipped toward 21,280 with next potential support near 21,125 then 21,000.

North American and European Indices

US 30 is bouncing around its May 2015 peak near 18,360 trading up to a new all-time intraday high near 16,380 while support moves up toward 18,340. Next potential upside test near the 18,500 round number. RSI breaking out of a downtrend signals momentum turning upward

US NDAQ 100 is taking another run at 4,600 channel resistance with RSI breaking out of a downtrend confirms a recent breakout by the index. Support moves up toward 4,570 with next resistance on trend near 4,740.

US SPX 500 has levelled off near 2,150 to digest its recent breakout to new all-time highs above 2,135 after encountering initial resistance near 2,160. Next potential upside tests near 2,200 then a measured 2,140 on trend. Rising RSI confirms upward momentum increasing.

UK 100 is still bumping up against 6,700 resistance with support moving up toward 6,660. Next potential upside resistance possible near 6,765 then 6,815.

Germany 30 continues to struggle with 10,000 resistance trading between 9,910 and 9,940. RSI back above 50 signals momentum still turning upward with the next test on a breakout possible near 10,140.

Commodities

Gold has stabilized near $1,340 for now but with resistance dropping toward $1,347 and RSI still falling under 50 a downdraft still appears to be underway with a retest of $1.315 or even the $1,300 round number still possible.

Crude Oil WTI gave back much of its previous advance falling from a lower high near $46.70 back under $45.00 and on into the $44.40 to $44.80 range with next potential support near $43.75 a Fibonacci level.

FX

US Dollar Index is sitting steady in the 96.20 to 96.40 area as it continues to trend sideways in a 95.40 to 96.80 channel.

EURUSD is testing resistance at its 200-day average near $1.1100 which has been holding so far. The pair has moved up from $1.1070 as it trades within a broader $1.1000 to $1.1200 range. RSI levelling off suggests downward pressure starting to ease.

GBPUSD ran into resistance near $1.3315 having completed a 23% retracement of its recent selloff, and has started to drop back falling toward the $1.3140 to $1.3200 area with next potential support at the $1.3000 round number and breakout point.

NZDUSD is starting to retrench. Unable to overcome resistance near $0.7310, the pair has dropped back toward $0.7270 with next support possible near $0.7195 a Fibonacci level. RSI confirms upward momentum levelling off.

AUDUSD has dropped back toward 40.7600 from $0.7660 but higher lows for both the pair and the RSI indicate underlying upward momentum remains intact through the recent correction.

USDSGD is sitting steady just below $1.3500 while RSI holding below 50 confirms downward pressure intact as the pair retreats within a $1.3400 to $1.3600 trading channel.

USDJPY is digesting yesterday’s rally trading near 104.40 just below resistance in the 105.00 to 105.15 area between a round number and 23% Fibonacci retracement level. Support rises toward 103.90. RSI back above 50 confirms upturn in momentum.

GBPJPY has levelled off in the 137.00 to 137.90 range after running into resistance near 139.50 with more possible 140.00 and 140.55 a 38% retracement of the Brexit selloff. Pair may need to consolidate a huge rally up off 130.00 recently.

EURJPY is having an inside consolidation day holding above the 115.00 round number but encountering resistance near 116.45. RSI testing 50 where a breakout would confirm an upturn in momentum.

CADJPY is holding above 80.00 continuing to attract renewed interest following a big pike up from near 78.00. RSI testing 50 indicates confirmation of an upturn pending. Next resistance possible near 81.00 then the 50-day average near 82.25.