Markets in Europe and North America have been steady today with GBP and CAD slipping back a bit on Brexit news and oil trading. Asia Pacific currencies have been in rally mode, particularly SGD and NZD. Indices are mixed with Hong Kong soaring while Australia and Japan roll over.
Asia Pacific Indices
Australia 200 is falling away once again from 5,830 resistance sliding away from a triple top back under 5,800 and on toward 5,760. It remains in an uptrend, however, above support in the 5,700 to 5,730 area between a round number and its 50-day average. RSI testing 50 indicates a downturn in momentum pending.
Japan 225 is still forming an ascending triangle above 19,200 support but is also rolling over falling back under 19,500 and on toward 19,350. RSI testing 50 where a breakdown would signal a downturn in momentum. Next support near the 19,000 round number with next resistance near 19,675.
Hong Kong 50 continues to climb, blasting through 24,500 and advancing on 24,590 while support rises toward 24,570 from 24,490. RSI is not confirming a new high and a negative divergence suggests upward momentum slowing but it continues to advance for now with next resistance near 25,000 where a round number and measured move converge.
North American and European Indices
US 30 remains stuck below 21,000 and a broken uptrend line trading near 20,900. RSI under 70 indicates a continuing correction which has been sideways rather than downward so far. Next potential pullback support possible near 20,790.
US SPX 500 is trading near 2,370 as it bounced around between 2,350 and 2,400. A double top in the index and a weakening RSI suggest that the recent uptrend has ended and we have moved into a consolidation phase with the potential for a correction.
US NDAQ 100 continues to attract support at 5,395 its recent breakout point but continues to struggle to make further headway trading near 5,405 and below 5,430 resistance. An overbought RSI and a negative divergence indicate recent rally overextended and upward momentum slowing.
UK 100 is holding in to 7,400 round number support, keeping its uptrend going with initial resistance near 7,440 then 7,500 where a round number and a measured move converge. Next support in a pullback possible near 7,335.
Germany 30 remains in an uptrend holding above the 12,000 round number but appears to be levelling off near 12,050 below 12,115 and 12,180 resistance. A negative RSI divergence indicates slowing upward momentum. Next potential support near 11,905 on a breakdown.
Gold is sending mixed signals. The metal remains under accumulation with support rising toward $1,230 from $1,225 but resistance has emerged near $1,234 with more possible near $1,237 and $1,242. RSI between 50 and 60 indicates an upswing underway within a broader sideways trend.
Crude Oil WTI has resumed declining with resistance falling toward $48.50 from $49.50 and the price sliding under its 200-day average near $48.40 toward $48.00. RSI is oversold but confirming downward momentum so far. Next potential support at the recent intraday low near $47.00.
US Dollar Index dipped under 100.00 toward 99.85 but has bounced back in what could be a bear trap and hammer bottom. The index would need to clear 100.35 to call off recent downward pressure and signal an upturn with next potential resistance near 100.85.
EURUSD is bouncing around between $1.0720 and $1.0780, recently trading near $1.0745. With RSI still indicating increasing upward momentum, this appears to be a normal pause within an uptrend with next potential resistance at a Fibonacci cluster near $1.0830.
GBPUSD looks like the recent rally may be levelling off with the pair sliding back toward $1.2340 after rallying up toward $1.2435 overnight. A bearish shooting star candle appears to be forming. RSI also indicates momentum levelling off so we could be pausing to consolidate recent gains. Next support possible near $1.2320 then $1.2300.
NZDUSD continues to climb with support moving up toward $0.7040 from $0.7000 and the pair advancing on $0.7055 with next potential resistance near $0.7145 where the 50 and 200-day averages come together. RSI testing 50 where a breakout would confirm an upturn in momentum.
AUDUSD continues its upswing with the pair advancing on $0.7730 and the RSI breaking out of a downtrend indicating growing upward momentum. Support moves up toward $0.7700 from $0.7665 with next potential resistance near $0.7815 a big well established channel top.
USDSGD is breaking down today, diving under the $1.4000 round number and retesting it as new lower resistance. RSI under 50 and falling confirms downward momentum increasing. Next support possible near $1.3945 a Fibonacci level then $1.3900 and the 200-day average.
USDJPY has found some support near 112.35 a Fibonacci level and 40 on the RSI. The pair has rebounded toward 112.55 but so far this appears to be a normal trading bounce with initial resistance possible near 112.85 then 113.35. Next downside support possible near 111.60.
GBPJPY remains under distribution, steadily declining in a falling channel between its 50 and 200-day averages. The pair failed to retake 140.00 and has dropped back toward 138.90 with resistance falling toward 139.20 and next support possible near 138.10 a Fibonacci level.
EURJPY is breaking down again with the pair falling under 121.00 confirmed by the RSI falling under 50. Resistance drops toward 121.30 with next potential support near 120.35 then the 120 00 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.