Chart Signals: USD plunge sends gold and other currencies screaming upward

USD had the rug ripped out from under it by nonfarm payrolls, sparking big gains for gold, JPY, EUR, GBP, CAD, AUD, NZD and several other currencies. US and UK indices managed to overcome early weakness to finish the week strong setting the stage for a potential catch up rally in Asia Pacific indices Monday.

USD had the rug ripped out from under it by nonfarm payrolls, sparking big gains for gold, JPY, EUR, GBP, CAD, AUD, NZD and several other currencies. US and UK indices managed to overcome early weakness to finish the week strong setting the stage for a potential catch up rally in Asia Pacific indices Monday.

Asia Pacific indices

Australia 200 is sending mixed signals holding 5,275 channel support but a rebound was contained by the 50-day average near 5,320. RSI slipping back under  50 suggest momentum turning downward but copper and gold rallies could benefit mining stocks.

Hong Kong 50 slipped toward the 20,860 to 20,940 zone after probing resistance near the 21,000 round number. RSI still rising suggests this may e a temporary setback within an uptrend. Next upside resistance near 21,220.  

India 50 continues to struggle with 8,280 resistance with an overbought RSI suggesting potential for a trading correction with initial support near 8,220 then 8,160.

Japan 225 is testing channel support near 16,300 trading near 16,340. RSI back under 50 confirms a downswing underway. Next support on a breakdown near 16.055 with initial resistance on a rebound possible near 16,600 then 16,725.

North American and European Indices

US 30 shrugged off early weakness that knocked it down toward 17,680 early on, rallying back up ward 17,830 with support moving up to the 50-day average near 17,750. RSI near 50 suggests sideways momentum. Next resistance near 17,855 then 17,835.

US NDAQ 100 tried to break 4,500 falling to test 4,480 at one point but then rebounded toward 4,510 above 4,500 round number and Fibonacci support and below initial resistance near 4,540.

US SPX 500 finished the week nearly right on 2,100. Bears were unable to break 2,085 initial support but a double top still appears to be forming below 2,112. RSI indicates upward momentum intact for now.

UK 100 has a more upbeat tone, resuming its upswing trading back above 6,200 and advancing on 6,250 with next resistance near 6,300. RSI successfully retested 50 as support following a breakout confirming an upturn in momentum.

Germany 30 has turned lower again, falling back into the 10,000 to 10,120 area between its 50 and 200-day averages finishing near 10,100. RSI swinging between 40 and 60 indicates a sideways trend with a downswing underway at the moment.

Commodities

Gold took a big leap forward Friday driving up off $1,210 toward $1,240 and testing  $1,243 a Fibonacci level just below the 50-day average near $1,246. Next upside resistance possible near $1,265. RSI clearing 50 confirms momentum turning upward.  

Crude Oil WTI is holding steady within a $48.00 to $50.00 trading channel while continuing to work off an overbought RSI. Initial support near $48.10 with initial resistance near $48.70 then $49.75.

Copper is picking up again rallying off $2.05 toward $2.12 with next potential resistance near $2.16 a 23% Fibonacci retracement of the previous downtrend. RSI testing 50 where a breakout would confirm momentum turning back upward. 

FX

US Dollar Index turned decisively lower diving down from near 95.50 back toward 94.00 while RSI slicing through 50 confirmed a downturn in momentum. Next potential support near 93.65 with initial rebound resistance near 94.60 the 50-day average.

EURUSD took off Friday, rallying up off $1.1150 through $1.1225 and carrying on past its 50-day average near $1.1310 and driving on toward $1.1350. RSI regaining 50 signals momentum turning upward again with next resistance in the $1.1380 to $1.1400 range.

GBPUSD is rallying within its broad $1.4330 to $1.4780 trading channel, driving up off $1.4400 toward $1.4520 with next resistance near $1.4590. RSI bouncing around 50 confirms sideways momentum with the potential for big swings within the range.

NZDUSD is breaking out to the upside blasting through its 50-day average near $0.6845 and flying toward $0.6960 with the $0.7000 round number looming ahead. RSI blasting off 50 confirms upward momentum accelerating.

AUDUSD has broken out of a rounded bottom, clearing $0.7300 which may become new support and advancing on $0.7360 with next resistance possible near $0.7395 then the 50-day average near $0.7485. RSI rallying through 50 confirms the upturn in momentum.   

USDSGD sold off sharply Friday taking out $1.3735 then diving toward $1.3600 and falling on toward $1.3570 with next potential support near $1.3530 and the $1.3500 round number. RSI back under 50 confirms momentum turning downward. 

USDJPY remains in a downtrend, dropping from near 109.25 short of its 50-day average down under 107.00 and on toward 106.60. Next potential support near 105.65 which could end in another breakdown or a double bottom. 

GBPJPY keeps on falling, confirming its breakdown bbelow158.00 its 50-day average falling on toward 154.80 with next potential support near 153.75. RSI falling away from 50 confirms downward pressure increasing. 

EURJPY remains under distribution sliding toward 121.00 with next support possible near 120.00 a round number and measured move. RSI indicates downward pressure still increasing as resistance falls toward 121.70.

CADJPY is retesting channel support in the 82.00 to 82.50 area with next support possible near 81.75 then 80.40 on a breakdown and initial rebound resistance near 83.30 if support manages to hold.

USDCAD is breaking down again with RSI diving under 50 to complete a head and shoulders top and signal a downturn. The pair fell from near $1.3090 down through $1.3000 and on toward $1.2920 and the 50-day average with next support after that possible near $1.2765.