Chart Signals: WTI and CAD rally, NZD and AUD retreat

Oil is bouncing back in a big way today pulling CAD higher with it. Meanwhile, major world indices appear to be resuming their advance. On the flip side, JPY performance has been mixed. NZD and AUD meanwhile, continue to give back recent gains in the wake of yesterday’s false spike in the Kiwi Dollar.

Oil is bouncing back in a big way today pulling CAD higher with it. Meanwhile, major world indices appear to be resuming their advance. On the flip side, JPY performance has been mixed. NZD and AUD meanwhile, continue to give back recent gains in the wake of yesterday’s false spike in the Kiwi Dollar. 

Asia Pacific Indices

Australia 200 held 5,485 Fibonacci  support and has bounced back up toward 5,550 but it needs to clear 5,560 to confirm an upturn with next resistance possible at the recent high near 5,610. RSI holding 50 suggests underlying uptrend intact through a recent correction.

Japan 225 continues to climb, rallying up off a successful test of Fibonacci support near 16,675 through 16,815 and on toward 16,910 with next potential resistance near the 17,000 round number then its 200-day average near 17,125.

Hong Kong 50 remains under accumulation lifting up off a successful test of 22,325 support through 22,630 and rallying on toward 22,770 with next potential resistance near the 23,000 round number. 

North American and European Indices

US 30 is bumping up against its July high near 18,630 having rallied up from 18,550. This test could end in a double top of a breakout. RSI suggests upward momentum starting to increase again. Next potential measured resistance near 19,050.  

US NDAQ 100 is still hanging around 4,800 consolidating a six-week rally that left the RSI in overbought territory. Next potential resistance near 4,900 then the big 5,000 round number on trend with correction support near 4,740 initially.

US SPX 500 continues to trend sideways between 2,150 and 2,190 recently bouncing up off 2,175. Next measured test possible near 2,235 RSI steady above 50 indicates uptrend slowing but still intact for now.

UK 100 continues to climb, advancing on 6,900 with next potential resistance possible near a measured 7,015 while support rises toward 6,880 from 6,810. Overbought RSI suggests it may need to pause for a rest at some point.

Germany 30 remains in an uptrend advancing into the 10,680 to 10,740 range but an overbought RSI still suggests that the index may need to digest recent gains in the near term. Next upside resistance tests possible near 10,880 then the 11,000 round number.

Commodities

Gold has dropped back toward $1,344 from $1,356 but it remains above its 50-day average near $1,320 and a higher low near $1,330. RSI holding 50 confirms underlying upward momentum remains intact. Upside resistance in place near $1,365 then $1,377.

Crude Oil WTI blasted up off support at a higher low near $41.00 driving on toward the $43.00 to $43.30 area with next potential resistance in the $44.80 to $45.00 zone between a Fibonacci level and a round number. RSI testing 50 indicates confirmation of an upturn pending.

FX

US Dollar Index remains stuck below 96.00 following yesterday’s selloff trading near 95.75 within a 95.00 to 97.50 trading range.

EURUSD ran into resistance near $1.1200 and has slumped back toward $1.1140 near its 50-day average while continuing to bounce around in a $1.1000 to $1.1240 trading range.

GBPUSD has drifted back under $1.3000 once again while RSI under 50 and falling confirms momentum turning increasingly downward.  A retest of the July low near $1.2790 remains possible. Initial rebound resistance possible near $1.3090.

NZDUSD continues to slide back following yesterday’s failed attempt to break out over $0.7300 dropping from near $0.7270 toward $0.7200. RSI suggests underlying uptrend intact for now but if support fails, the 50-day average near $0.7120 could be tested.

AUDUSD is retesting $0.7700 as support which is common following a breakout and may either confirm or reject the recent advance. Rising RSI suggests underlying accumulation continues. Resistance has emerged near $0.7760 with next support possible near $0.7600.

USDSGD has stabilized in the $1.3400 to $1.3500 area while RSI stabilizing above 40 suggests downward pressure may have peaked and is starting to subside. Initial upside resistance near $1.3545 with more support in place near $1.3360. 

USDJPY keeps creeping upward today climbing from near 101.10 toward 102.00 with next resistance possible near 102.75 then the 50-day average near 104.00. RSI indicates downward pressure fading and an upturn in momentum pending.

GBPJPY has bounced up from near 131.20 toward 132.30 but it needs to clear 133.75 to call off the current downtrend where the pair and RSI trends suggest this may be an upward correction within an ongoing retreat with next support in place near the 130.00 round number.

EURJPY continues to stabilize between 112.00 and 113.75 with RSI picking up off 40 indicating downward momentum weakening. Initial rebound resistance possible at the 50-day average near 116.00.

CADJPY is turning upward today clearing 78.00 to confirm a double bottom in place and an upswing starting.  The pair has advanced on 78.70 with next potential resistance near 80.00 where a round number and Fibonacci test converge.

USDCAD is breaking down today, taking out $1.3000 a round number and Fibonacci level with RSI dropping under 50 confirming the downturn. The pair has dropped toward $1.2960 with next potential support near $1.2860.