Chart Signals: Stocks, dollars, GBP rally while JPY and gold plunge

Markets have gone back into risk-on mode with capital flooding out of defensive havens like gold and JPY, moving back into stocks and resource dollars like AUD, NZD and CAD (with SGD gaining at a slower pace). GBP has turned back upward sharply as well with some of the Brexit pressures starting to fade.

Markets have gone back into risk-on mode with capital flooding out of defensive havens like gold and JPY, moving back into stocks and resource dollars like AUD, NZD and CAD (with SGD gaining at a slower pace). GBP has turned back upward sharply as well with some of the Brexit pressures starting to fade.

Asia Pacific Indices

Australia 200 is building on yesterday’s rally, advancing on 5,400 while support moves up toward 5,383. Next potential resistance at the May high near 5,425 then 5,485 a Fibonacci level. Rising RSI confirms momentum turning increasingly upward.

Japan 225 is soaring for a second day, driving up off a Fibonacci cluster near 16,000 through its 50-day average near 16,215 and on into the 16,530 to 16,570 area with next potential resistance near 16,675 a Fibonacci level. RSI clearing 50 confirms upturn in momentum.

Hong Kong 50 is breaking out to the upside today, clearing 21,00 and driving toward the 21,340 to 21,420 area with next potential resistance near 21,520 then 21,680. RSI confirms upward momentum increasing.

North American and European Indices

US 30 is in rally mode again, driving up from near 18,240 toward a retest of the May 2015 high near 18,360 with next potential resistance after that near 18,500. RSI confirms momentum turning increasingly upward.

US NDAQ 100 keeps climbing, building on yesterday’s breakout from a downtrend advancing from near 4,560 toward 4,585 with next potential resistance near 4,600 then 4,725.

US SPX 500 is breaking out today rallying toward 2,156 while support moves up toward 2,152 from the 2,137 breakout point. Next upside test appears near the 2,150 round number.

UK 100 has encountered some resistance near 6,700 and has paused near there with support rising toward 6,660. Next upside resistance possible near 6,775. RSI indicates underlying upward momentum still increasing.

Germany 30 is on the move upward today, clearing its 50-day average near 9,890 and taking a turn at the 10,000 round number while support rises toward 9,950. Next resistance possible at the 200-day near 10,065 then channel resistance near 10,370.

Commodities

Gold continues to fall away from a double top as a trading correction deepens. Resistance falls toward $1,355 from $1,375 with the price diving under $1,350 and falling toward $1,332 breaking last week’s low to confirm a deeper correction underway with next potential support near $1,320 then $1,306.

Crude Oil WTI is on the rebound after an attempt to break $45.00 yesterday failed and support near there held. The price has rallied back up from $45.30 toward $46.70 with next potential resistance at the 50-day average near $47.55. RSI holding 40 indicates recent downward correction may be ending.

FX

US Dollar Index is trading steady near 96.30 as it continues to bounce around in a channel between 95.40 and 96.80. RSI suggests upward momentum levelling off and potentially starting to weaken.

EURUSD continues to struggle with its 200-day average near $1.1100 bouncing around between $1.1060 and $1.1120 so far today within a wider $1.1000 to $1.1200 range where it has been consolidating a downtrend.

GBPUSD is breaking out today! After retaking $1.3000 the pair has spiked back up into the $1.3240 to $1.3300 area nearly completing a 23% retracement of the recent selloff. RSI back above 30 confirms downward pressure easing and a trading rebound underway.

NZDUSD is challenging $0.7300 again trading between $0.7280 and $0.7320 which could end in a double top or a breakout. Next upside tests near $0.7325 and $0.7400. RSI peaking at a lower high, however, suggests upward momentum weakening and a correction back toward $0.7195 a Fibonacci level possible.

AUDUSD is retesting $0.7650 which could end in a breakout or a double top. Next upside resistance possible near $0.7750 or the April high near $0.7840. RSI indicates upward momentum accelerating. Support rises toward $0.7570.

USDSGD has drifted back under $1.3500 toward $1.3460 but essentially continues to bounce around between $1.3420 and $1.3580. RSI stuck below 50 indicates downward momentum intact.

USDJPY continues to rally up out of a double bottom set at the 100.00 round number driving up from 103.00 toward the 105.00 round number nearly completing a 23% retracement of the previous downtrend. RSI retaking 50 confirms the upturn in momentum. Support rises toward 104.80 from 104.40.

GBPJPY is soaring for a second straight day building on yesterday’s breakout over 130.00 by regaining 135.00 and soaring into the 139.00 to 139.50 area with next potential resistance at the 0 to 136.90 area. Next potential resistance near 138.75 then the 140.00 round number. RSI confirms downward pressure fading fast.

EURJPY is breaking out today clearing 114.65 to signal the start of a new uptrend and rallying into the 116.00 to 116.40 area with next upside resistance possible near 117.85 then the 50-day average near 119.20 and the 120.00 round number. RSI testing 50 where a breakout would confirm an upturn in momentum.

CADJPY is taking off today, blasting up from near 77.80 through the 80.00 round number and on toward 80.80. Next potential resistance near 82.50ish where the 50-day average and a 38% retracement converge.

USDCAD continues to struggle with resistance near $1.3120 and has dropped back into the $1.2980 to $1.3020 area around the $1.3000 round number and Fibonacci test then the 50-day average. Next support possible near $1.2920.