Chart Signals: Crude and gold turn lower as USD, NZD and GBP advance
WTI crude continues to decline following completion of an Evening Star candle pattern and was joined in breaking down by gold. USD has bounced back a bit, breaking out against SGD in particular while underperforming relative to GBP where the recent Brexit selloff continues to unwind, and NZD where speculation of an aggressive rate cut program continues to fade.
Asia Pacific Indices
Australia 200 is picking up within a 5,485 to 5,600 trading range with RSI confirming upward momentum accelerating. Next potential resistance on a breakout near a measured 5,715.
Japan 225 continues to climb up off 16,400 trading near 16,570. Initial resistance near 16,675 a Fibonacci level with the next upside test on a breakout possible near the 17,000 round number and 200-day average. RSI holding 50 confirms underlying uptrend remains intact.
Hong Kong 50 continues to roll over, testing uptrend support near 22,780 which has held so far. RSI falling toward 50 indicates upward momentum failing and a downturn pending. Next support possible near 22,325 with bounce resistance possible near 23,000.
North American and European Indices
US 30 remains stuck below 18,700 trading near 18,520 with a double top still in place. RSI trending sideways above 50 indicates this as a pause within an ongoing uptrend with more support possible near 18,445 then the 50-day average near 18,230.
US NDAQ 100 continues to attract support above 4,800 with initial resistance near 4,830 then a measured 4,890 with more support near 4,770. Higher lows indicate ongoing accumulation but an overbought RSI could limit near term upside.
US SPX 500 keeps quietly climbing trading with steadily higher lows confirming continued accumulation. Trading near 2,190 with a 2,165 to 2,195 channel, next potential resistance appears near 2,200 then a measured 2,225. Next downside support in a pullback near 2,145 the August low.
UK 100 has dropped back from near 6,860 toward 6,820 as it consolidates recent gains in an emerging sideways channel between 6,800 and 6,960 while working off previous overbought RSI conditions.
Germany 30 is climbing up off 10,500 support trading up into the 10,620 to 10,660 area with next potential resistance near 10,720 then 10,800. A recent golden cross of the 50 and 200-day moving averages confirms underlying accumulation increasing.
Gold is breaking down today, taking out its 50-day average near $1,330 trading near $1,336, while RSI falling under 50 confirms a downturn in momentum and the recent break of an uptrend support line. Next potential support appears near $1,320 then $1,310.
Crude Oil WTI has dropped back toward $46.00 from a lower high near $47.60 after Tuesday’s rally failed to call off an Evening Star formation. RSI suggests upward momentum fading. Next potential support near $45.85 then $45.00 where a round number and the 50-day average converge. Initial resistance drops toward $46.40 from $47.20.
US Dollar Index is picking up a bit building on yesterday’s retest of 94.00 channel support by climbing toward 94.75 while RSI confirms downward pressure easing. It needs to retake 95.00 to confirm the start of an upswing with next potential resistance near 95.70 the 50-day average then the recent high near 96.40.
EURUSD is starting to roll over again sliding back under $1.1300 toward $1.1260 with next potential support near $1.1235 then $1.1200. RSI confirms upward momentum weakening and a correction starting.
GBPUSD continues to recover, putting $1.3200 into its rear view mirror and advancing on the $1.3230 to $1.3270 area. RSI clearing 50 confirms momentum turning upward. Next resistance near $1.3315 where a 23% retracement and the 50-day average converge.
NZDUSD continues to hang around $0.7300 and just below $0.7345 resistance where a breakout would complete an ascending triangle. Rising RSI and higher lows for the pair indicate continued underlying accumulation with next potential resistance in the $0.7480 to $0.7500 area. Support rises toward $0.7260.
AUDUSD continues to drift back toward trend support and its 50-day average near $0.7550 recently trading near $0.7620. RSI testing 50 where a break would signal a downturn.
USDSGD is breaking out of a downtrend today! Pair has cleared $1.3500 which may become support, advancing on $1.3550 with next potential resistance near $1.3620 then $1.3730. RSI back above 50 confirms momentum turning upward.
USDJPY continues to stabilize near 100.00 bouncing toward 100.55 and indicating the big round number remains well defended. RSI indicates downward pressure levelling off. Initial resistance near 100.90 with initial support near 99.50.
GBPJPY keep on climbing up out of a double bottom base, trading up toward 133.00 with support rising toward 131.75 and net resistance near 134.25 followed by 135.00. RSI gaining on 50 indicates confirmation of an upturn pending.
EURJPY remains stuck below its 50-day average near 114.50 trading between there and 112.00 support recently near 113.20.
CADJPY continues to base build in the 77.00 to 79.00 range with RSI rising toward 50 indicating downward pressure receding.
USDCAD is bouncing around between $1.2900 and $1.2950 with RSI indicating downward momentum fading and an upturn possible but upside currently capped by resistance at the 50-day average and $1.3000 round number.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.