Chart Signals: WTI spikes upward, NZD rallies while GBP and CAD fall back

NZD in some ways appears to be defying gravity the way it has outperformed other currencies this week and breaking out of an ascending triangle base. On the other hand, both GBP and CAD have started to go into correction mode with recent rallies running out of gas.

NZD in some ways appears to be defying gravity the way it has outperformed other currencies this week and breaking out of an ascending triangle base. On the other hand, both GBP and CAD have started to go into correction mode with recent rallies running out of gas. 

 

Asia Pacific Indices

Australia 200 continues to attract support above 5,385 but also continues to struggle with 5,400 with next resistance possible near 5,485 a Fibonacci test. Oversold RSI suggests a trading bounce possible within a downtrend that started with a double top last month. 

Japan 225 failed to retake 17,000 confirming yesterday’s breakdown and a pullback starting. RSI suggests recent upward momentum fading. Initial correction support in place at the 200-day average near 16,800 also a Fibonacci level. 

Hong Kong 50 touched a new high near 23,810 but this was not confirmed by the RSI. An overbought reading and a negative divergence suggests the recent correction back to 23,710 could deepen with next potential support near 23,580 then 23,480. 


North American and European Indices

US 30 has been trading between 18,480 and 18,550, trending sideways above its 50-day average near 10,420 and below 18,660 resistance. RSI bouncing around 50 confirms neutral momentum. 

US NDAQ 100 is challenging the top of its current 4,740 to 4,840 trading range with next potential resistance on a breakout possible near a measured 4,940. Higher lows and rising RSI indicate upward momentum increasing. 

US SPX 500 keeps creeping toward the top of its 2,160 to 2,200 trading range recently trading near 2,185 with initial resistance near 2,195. RSI holding 50 indicates underlying uptrend intact through this consolidation phase. 

UK 100 has levelled off near 6,840 after dropping back from 6,925 over the last couple of sessions. Support remains in place at the 50-day average near 6,740. RSI near 50 suggests momentum shifting from upward to neutral. 

Germany 30 continues to consolidate recent gains near 10,700 in the 10,720 to 10,760 zone with support rising toward 10,665 and next resistance in place near 10,800 then 10,880. Rising RSI and a golden cross indicated continued accumulation.  


Commodities 

Gold ran into resistance near $1,352 for the price and 60 on the RSI and has dropped back toward $1,346 in what looks like a normal trading correction so far. Support rises to the 50-day average near $1,340 with next potential resistance near $1,360. 

Crude Oil WTI has popped back up above $45.00 into the upper half of a $40-$50 trading channel advancing on $45.90 with next potential resistance near $46.20 then $47.20. RSI back above 50 signals momentum turning upward. 

FX 

US Dollar Index remains stuck below 95.00 trading near 94.80 with next support possible near 94.45 then 94.00 after getting smashed down from its 50-day average near 95.80 on Tuesday. RSI back under 50 indicates neutral to downward momentum. 

EURUSD ran into some resistance near $1.1260 and has slipped back toward $1.1230 but remains above $1.1200 as it consolidates Tuesday’s rally up off its 50 and 200-day averages near $1.1135 that confirmed a higher low on trend. Next potential resistance closer to $1.1325. 


GBPUSD has paused short of resistance in the $1.3475 to $1.3500 area, dropping back from near $1.3420 toward $1.3340 but holding above $1.3315 Fibonacci support to keep its recovery trend intact. 


NZDUSD continues to soar, blasting through $0.7400 to confirm a breakout from an ascending triangle back and advancing on $0.7480 before running into some resistance and dropping back toward $0.7450. RSI getting overbought suggests potential for a pause or correction in the near term with next support possible near $0.7380. 

AUDUSD’s uptrend has stalled for the moment as the pair struggles with $0.7700 resistance and drops back toward $0.7670 with support in place near $0.7645 then $0.7600. Next upside resistance possible near $0.7760. 

USDSGD remains below $1.3500 where it broke a round number and its 50-day average yesterday to signal a downturn which has been confirmed by RSI breaking under 50. Next potential support near $1.3440 then $1.3350. 

USDJPY found support at a higher low near 101.20 and has bounced back toward 101.70 with a potential hammer candle and a higher low suggesting the recent pullback may have run its course, although RSI slipping under 50 suggests otherwise. Initial resistance near 102.20.  

GBPJPY continues to backslide, dropping from near 137.25 back under 136.00 a Fibonacci level and on toward 135.70 with net support near 135.00 where a round number and the 50-day average cluster. RSI falling toward 50 indicates upward momentum fading. 

EURJPY has resumed its downtrend, taking out the 115.00 round number, 114.95 Fibonacci level and its 50-day average all in one day falling toward 114.40 with next potential support near 112.75. RSI back under 50 confirms momentum turning downward.  

CADJPY is getting hammered for a second straight day following a failure to retake 80.00. The pair dropped back under 79.00 and its 50-day average which has become lower resistance with next potential support near 78.25. 

USDCAD staged a strong bounce up off uptrend support near $1.2820 back up toward $1.2900 with next potential resistance near $1.2940 and $1.3000 where a round number and Fibonacci test converge with the 50-day average. A higher low in the RSI signals downward pressure easing.