AUD and Australian stocks have been advancing ahead of today’s RBA decision indicating traders are expecting a more hawkish tone from new Governor Lowe. UK markets remain active with the UK 100 breaking out while GBP has fallen relative to USD as Brexit preparations continue. WTI crude oil continues to climb while MXN continues to rebound ahead of today’s US Vice-Presidential debate.
Asia Pacific Indices
Australia 200 has encountered some resistance near 5,500 and has dropped back to retest its 50-day average near 5,455 as support which has been successful so far keeping its uptrend intact. Next resistance looks closer to 5,600 with next support near 5,400. Rising RSI indicates upward momentum increasing.
Japan 225 is sitting on its 50 and 200 day averages near 16,600 with RSI on 50 confirming a sideways range between 16,330 a Fibonacci level, and 16,750.
Hong Kong 50 is holding steady just above the middle of a 23,000 to 24,000 trading range trading between 23,520 and 23,620. Lower highs in the RSI suggest upward momentum fading and a downturn pending.
North American and European Indices
US 30 is still testing channel and 50-day average resistance near 18,380 recently slipping back into the 18,200 to 18,280 area. RSI is testing 50 where a breakout would confirm an upturn in momentum. Next potential resistance appears near 18,560 with initial support near 18,200.
US NDAQ 100 continues to consolidate recent gains in the 4,800 to 4,880 range above its 50-day average with next potential resistance on a breakout near a measured 4,960 then the 5,000 round number.
US SPX 500 is sitting on 2,160 just below its 50-day average as it consolidates in a 2,140 to 2,180 channel with more resistance near 2,195 and next support near 2,120. RSI on 50 confirms sideways trend.
UK 100 is breaking out today! The index has blasted through 6,925 resistance and has been advancing on the 7,000 round number with next potential resistance near a measured 7,075 then 7,110. Rising RSI confirms upward momentum accelerating.
Germany 30 is closed for a holiday.
Gold is drifting in the lower half of a $1,300 to $1,345 trading range below its 50-day average near $1,332 and slipping from near $1,325 toward $1,310. Falling RSI indicates downward pressure increasing. Support remains in place at a Fibonacci cluster between $1,290 and $1,300.
Crude Oil WTI continues to climb, clearing $47.50 which may become support and advancing on $48.50 with next potential resistance near $48.75 then $50.00. RSI breaking out over 60 confirms momentum turning increasingly upward.
US Dollar Index is holding steady near 95.50 as it bounces around in a channel between 94.70 and 96.30.
EURUSD is consolidating Friday’s bounce up off $1.1160 trading near $1.1220 and below $1.1280 resistance as a symmetrical triangle continues to form. RSI bouncing between 40 and 60 confirms sideways trend.
GBPUSD continues to slide, falling back into its $1.2800 to $1.2880 support zone which could end in a triple bottom or a major breakdown. Falling RSI suggests momentum turning increasingly downward. Next support possible near a measured $1.2600 with initial resistance near $1.2950.
NZDUSD continues to struggle with $0.7300 resistance and appears to be rolling over with initial support near $0.7256 and the 50-day average followed by $0.7195 a Fibonacci level. RSI drifting under 50 indicates flat to slightly downward momentum.
AUDUSD is advancing within a $0.7600 to $0.7725 trading range between its 50-day average and recent highs, recently trading near $0.7680. RSI above 50 indicates upward momentum intact. Next resistance possible near $0.7755.
USDSGD continues to trend upward within a $1.3500 to $1.3700 range recently advancing up into the $1.3640 to $1.3670 area. RSI climbing up off 50 confirms momentum turning increasingly upward.
USDJPY has levelled off near 101.50 where it continues to struggle with its 50-day average and a long-term downtrend resistance line. RSI still stuck below 50 which it needs to retake to signal an upturn. Next resistance near 102.90 with next support near 100.80 then 100.00.
GBPJPY continues to attract support above 130.00 where a triple bottom appears to be in place with more support possible near 128.60. The pair has bounced up toward 130.70 with next resistance possible near 131.75 then 132.50.
EURJPY is sitting on its 50-day average near 114.00 with next resistance near 115.00 a round number and Fibonacci level while support rises toward 113.40. RSI regaining 50 signals momentum turning upward.
USDCAD held support at its 50-day average near $1.3060 and has bounced up into the $1.3100 to $1.3140 area, but it still appears to be coming under distribution with resistance falling toward $1.3150. Next potential support near the $1.3000 round number. RSI testing 50 where a breakdown would confirm a downturn in momentum.
USDMXN continues to retreat, taking out 19.30 and falling toward 19.25 with next potential support near 19.10 a 23% Fibonacci retracement of its recent advance followed by its 50-day average near 18.82. Resistance falls toward 19.37. RSI holding 50 indicating this as a trading correction within an ongoing uptrend so far.