Chart Signals: Relentless US Dollar rally drags on stocks and currencies

The US Dollar index broke out to another new high on trend today and continues to advance on a retest of the 100.00 round number. This put other currencies back on their heels and appears to be weighing on US stocks as well. CNH continues to weaken but is looking overdone with the potential for a reversal. Hong Kong and Japan indices have been trading higher but US and Australian markets still look vulnerable.

Asia Pacific Indices

Australia 200 is clinging to 5,400 support but continues to roll over with lower highs and RSI falling under 50 indicating momentum is turning downward. Resistance has dropped toward 5,430 with next support near 5,365 then 5,300. 

Japan 225 continues to climb building on its breakout over 17,000 by advancing into the 17,170 to 17,360 area with next potential resistance on trend near 17,425 then 17,800. Rising RSI confirms upward momentum increasing. 

Hong Kong 50 continues to climb within a 23,000 to 24,000 trading channel. The index is coming off a bullish engulfing day that saw it blast through 23,410 and 23,500 on its way toward 23,555 with next resistance near 23,650. 


North American and European Indices

US 30 continues to drift lower within a, 18,000 to 18,360 trading range with lower highs forming a bearish descending triangle. Index has been bouncing between 18,190 and 18, 280 of late. RSI stuck below 50 confirms momentum turning downward. Next downside support near 17,915 a 23% Fibonacci retracement of its previous uptrend. 

US NDAQ 100 is advancing on the top of its 4,740 to 4,900 trading channel. Next resistance on a breakout near 5,000, support rises toward 4,875 from 4,825. A growing negative RSI divergence suggests upward momentum slowing and a downturn pending. 

US SPX 500 is bumping up against 2,150 and 50 on the RSI where breakouts would signal an upturn but failures would confirm that the index has come under distribution. Next resistance near 2,160 and the 50-day average with next support possible near 2,122 then 2,100. 

UK 100 is still consolidating between 6,925 and 7,110 falling back under 7,000. A lower high following a double top along with RSI dropping toward 50 suggests increased resistance and emerging distribution.  

Germany 30 tried to break out over 10,800 but failed, dropping back toward 10.,765 after running into resistance near 10,830. This could be a bull trap but rising RSI suggests this could be a minor setback within an ongoing uptrend. Next resistance possible near 10,880 then the 11,000 round number. Rising RSI confirms increasing upward momentum. 

Spain 35 is breaking out of a big base today, clearing 9,115 to signal the start of a new uptrend with next potential resistance near 9.375 its April high then  9,655 a Fibonacci level. RSI confirms upward momentum increasing. 


Commodities 

Gold is sitting on its 200-day average near $1,264 within an emerging $1,250 to $1,274 trading range where it has stabilized as downward pressure eases. 

Crude Oil WTI is rolling over this morning, with resistance falling toward $50.65 from $51.30 and the price testing the $50.00 level with next potential support near $49.00. RSI rollover suggests a downswing starting. 


FX 

US Dollar Index continues to advance, building on Friday’s breakout over 98.20 which has become support, trading near 98.98 with upside resistance possible near 99.00 then the 100.00 round number. An overbought RSI and potential double top suggests uptrend overextended and a correction possible.   

EURUSD remains under distribution with resistance falling toward $1.0900 from $1.0930. RSI oversold but confirming downtrend intact so a pause possible with initial support near $1.0860 then $1.0800.  

GBPUSD continues to stabilize and work off an oversold RSI in the $1.2100 to $1.2360 range recently trading near $1.2220. 


NZDUSD remains under pressure falling away from $0.7195 a Fibonacci level that has become resistance following a breakdown and from 50 on the RSI confirming momentum turning increasingly downward. Recently near $0.7130, next potential support appears near $0.7075 then $0.7015. 

AUDUSD continues to fall away from $0.7725 channel resistance testing support at its 50-day average near $0.7600 followed by $0.7500 a round number and previous low. RSI back under 50 confirms momentum turning back downward. 

USDSGD encountered resistance near $1.3955 with more possible near $1.4000. It has dropped back slightly but remains well above $1.3885 breakout point support and in an uptrend. RSI still overbought indicates a correction remains possible.  

USDCNH keeps screaming upward having cleared 6.7370. It’s been trading near 6.7375 with more support possible near 6.8000 then a measured 6.8370. RSI extremely overbought so a reversal possible at some point. 

USDJPY is still hanging around 104.00 below 104.60 and 105.00 resistance and above 103.10 initial support with more possible at the 50-day closer to 102.00. RSI indicates upward momentum has levelled off for now. 

GBPJPY is holding steady near 127.40 within a 124.70 to 128.670 channel where it has been building a base for recovery following a big selloff. RSI advancing on 50 indicates downward pressure easing.  

EURJPY has stabilized above 113.00 near 113.40 for now but remains in a downtrend with resistance falling toward 113.55 from 114.20 and the 50-day average. Next potential support near 112.60 then 112.00. 
 
USDCAD is holding above $1.3310 with its breakout point becoming new Fibonacci support. The pair has been trading near $1.3380 with next potential resistance near $1.3410 then $1.3460. Rising RSI confirms momentum turning upward.   

USDMXN has bounced up off 18.50 through 18.56 a Fibonacci level toward 18.60 with next resistance on a rebound possible near 18.70 then 18.90. RSI suggests this may be a pause within a downtrend.