Chart Signals: USD rises as AUD, JPY, CAD, MXN and EUR weaken

For various reasons, a number of currencies have been under pressure with CAD and MXN taking hits from an oil correction plus the US debate while EUR has been undermined by a dovish ECB. AUD, NZD and JPY have also been falling back while the US Dollar index breaks out to the upside.

For various reasons, a number of currencies have been under pressure with CAD and MXN taking hits from an oil correction plus the US debate while EUR has been undermined by a dovish ECB. AUD, NZD and JPY have also been falling back while the US Dollar index breaks out to the upside. 


Asia Pacific Indices

Australia 200’s latest bounce has run into resistance at another lower high, this time near 5,450 indicating continued distribution. Index is currently trading between 5,380 and 5,500 within a wider 5,200 to 5,600 sideways channel.   

Japan 225 is breaking out today, decisively clearing 17,000 and rallying toward 17,270 with support rising toward 17,200 then 17,150. Next potential resistance near 17,430 a Fibonacci level. RSI confirms upward momentum increasing. 

Hong Kong 50 is hanging around 17,270, a Fibonacci level, trading in a 23,320 to 23,440 range. RSI peaking at a lower high and failing at 50 confirms a downtrend emerging with next support in place near the 23,000 round number. 


North American and European Indices

US 30 is bouncing around between 18,130 and 18,250 nested within an 18,000 to 18,360 trading range between a round number and the 50-day average. RSI still unable to retake 50 indicates momentum neutral to downward. 

US NDAQ 100 continues to attract support above 4,800 but signs of distribution are emerging with resistance falling toward 4,860 following a double top near 4,900 and the pair sliding toward 4,825. 

US SPX 500 continues to struggle with resistance at 2,150 where it broke the rising neckline of a head and shoulders top and 50 on the RSI indicating continued distribution. Initial support tests possible near 2,132, 2,116 and 2,100 a round number and the flat neckline. 

UK 100 is sitting just above 7,000 as it continues to consolidate recent gains in the 6,925 to 7,110 area. RSI holding 50 indicates this as a pause within an ongoing uptrend. 

Germany 30 regained 10,700 and continues to advance toward the top of a 10,300 to 10,800 sideways range. RSI above 50 and rising indicates upward momentum increasing. 


Commodities 

Gold is building on yesterday’s breakout having successfully retested its 200-day average near $1,266. RSI climbing toward 50 indicates downward pressure fading and a bounce underway. Next potential resistance appears $1,274 then near $1,282 a Fibonacci level. 

Crude Oil WTI failed to hold above $51.30 causing a breakout attempt to fail, but it continues to attract support above $50.00 with more near $49.00 recently trading near $50.40 in what looks like a normal trading correction. 


FX 

US Dollar Index is breaking out again, clearing 98.20 and advancing on 98.30 with next measured resistance possible near 98.85. RSI still overbought so a correction back toward 97.60 remains possible. 

EURUSD remains under distribution following a bearish engulfing day which saw it try to retake $1.1000 fail near $1.1040 and dive down toward $1.0930. Falling RSI confirms downward pressure increasing with next potential support near $1.0930 then $1.0860. 

GBPUSD is stabilizing near $1.2260 and the middle of an emerging wide $1.2000 to $1.2500 range where it has been base building. RSI back above 30 indicates downward pressure and oversold conditions starting to ease. Initial resistance near $1.2325 then $1.2425 with next support near $1.2160. 


NZDUSD peeked above its 50-day average but was knocked back from a lower high near $0.7265 back toward $0.7195 a Fibonacci level with next potential support near $0.7130. RSI faltering near 50 suggests the recent advance was a trading correction within an ongoing downtrend.  

AUDUSD failed to overcome $0.7725 channel resistance and also failed at 60 on the RSI keeping its sideways trend intact. A downswing has started with the pair falling back toward $0.7625 with next potential support at the 50-day average near $0.7600 then the $0.7500 round number. 

USDSGD is testing the top of a $1.3830 to $1.3930 range where it has been consolidating recent advances. Overbought RSI suggests a correction possible with initial support near $1.3880 but if it manages to break out, the $1.4000 round number could be challenged. 

USDJPY is still rolling over with resistance falling toward 104.00 and RSI also rolling over to indicate upward momentum weakening. Next potential support appears near 103.20 then the 50-day average near 102.00. Potential resistance on a rally near 104.60 then 105.00-105.20 between a round number and Fibonacci level. 

GBPJPY keeps quietly working its way back up toward the top of its 124.60 to 128.60 base building range recently trading near 127.40. RSI advancing on 50 indicates downward pressure weakening. 

EURJPY is sending mixed signals having held 113.00 to set a higher low although falling RSI suggests downward momentum intact. Initial resistance near 114.95 a Fibonacci level with next support near 112.50. 
 
USDCAD continues its big bounce up off $1.3000 driving up from $1.3100 toward $1.3215 and a test of its 200-day average with next potential resistance in the $1.3230 to $1.3250 area. RSI back above 50 confirms an upswing underway. Initial support rises toward $1.3190. 

USDMXN dipped down under 18.50 briefly but held above its 200-day average near 18.36 and has bounced back up above 18.56 a 38% Fibonacci retracement level. RSI indicates downward momentum intact for now but on a rebound, next potential resistance may appear near 19.70 then 18.90 the 23% retracement level.