Chart Signals: AUD and NZD break out alongside GBP on renewed interest in risk markets

Traders decided not to wait for the Brexit referendum results Thursday going into risk-on mode sending stocks higher. GBP has been rallying but most interestingly, AUD and NZD have been soaring both breaking out. On the other hand, JPY which had held up well in recent days finally gave way as capital left defensive havens. Markets may remain volatile through the day as Brexit voting results are reported with the potential for significant swings in both directions as has been seen in Cable already.

Traders decided not to wait for the Brexit referendum results Thursday going into risk-on mode sending stocks higher. GBP has been rallying but most interestingly, AUD and NZD have been soaring both breaking out. On the other hand, JPY which had held up well in recent days finally gave way as capital left defensive havens. Markets may remain volatile through the day as Brexit voting results are reported with the potential for significant swings in both directions as has been seen in Cable already.

Asia Pacific Indices

Australia 200 remains under accumulation, clearing 5,300 but encountering resistance near 5,335 a Fibonacci level with more possible near 5,385 or 5,400. RSI rallying off 50 confirms momentum turning back upward following a correction.

Japan 225 is breaking out to the upside today, rallying up from near 16,055, clearing 16,255 a Fibonacci level and driving on toward the 16,440 to 16,500 area with next resistance at its 50-day average near 16,535. RSI regaining 50 signals momentum turning upward.

Hong Kong 50 is breaking out today, driving up off 20,800 through 21,000 and on into the 21,040 to 21,170 area with next potential resistance near 21,455. RSI above 50 and rising confirms momentum turning upward. 

North American and European Indices

US 30 jumped up from near 17,850 toward 17,990 and dropped back toward 17,930 having encountered resistance near the 18,000 round number with more possible at the April high near 18,155. RSI rising up off 50 confirms momentum turning upward.

US NDAQ 100 is starting to pick up again, clearing 4,440 and advancing on 4,460 with net potential resistance near 4,500 a round number and Fibonacci test then 4,550. RSI regaining 50 signals momentum turning upward.

US SPX 500 regained 2,100 and is retesting it as new support with next potential resistance near 2,112 then the 2,120 high set earlier this month. RSI climbing up off 50 confirms momentum turning upward.

UK 100 has cleared the 6,300 resistance hurdle and popped up toward 6,385 before backsliding into a retest of the breakout point. Recently trading in the 6,320 to 6,340 area with downside support in place near 6,275.

Germany 30 has broken out of a congestion zone near its 50 and 200-day averages, clearing 10,100 and driving on toward 10,330 before running into resistance and sliding back toward 10,260. Rising RSI indicates upward momentum increasing.

Commodities

Gold keeps drifting downward sliding from near $1,270 towards $1,262 with next support at the 50-day average near $1,255 then a Fibonacci level near $1,243. RSI nearing 50 where a break would confirm a downturn in momentum.

Crude Oil WTI continues to consolidate previous advances in the $48.00 to $50.00 bouncing up toward $49.60 from $48.80 as it builds on a successful test of channel support. RSI above 50 confirms underlying uptrend still intact.

FX

US Dollar Index staged a bullish reversal Thursday breaking 93.45 falling to 93.00 and rebounding toward 93.60 in a classic bear trap washout. A hammer candle indicates bears may be exhausted. Next potential resistance near 94.10.

EURUSD has jumped up from the middle to the top of its current sideways trending channel from $1.1300 toward $1.1415. A breakout would signal the start of a new upleg that could challenge the $1.1500 round number initially. RSI above 50 and trending higher indicates upward momentum growing.

GBPUSD is all over the place today, breaking out of a trading channel and a long-term downtrend today clearing $1.4800 early on, advancing on $1.4945 with next resistance near the $1.5000 round number, dropping back to test $1.4750then rebounding toward $1.4890.   

NZDUSD is breaking out today! Blasting through $0.7195 a Fibonacci level and driving on toward $0.7260 with next potential resistance on trend near $0.7275 then a measured $0.7340. RSI getting overbought so a retest of the breakout point possible.

AUDUSD is breaking out today! Driving up through the $0.7500 round number, the pair is advancing on $0.7610 with initial support now near $0.7580. Next resistance possible near $0.7715. Rising RSI confirms upward momentum accelerating.

USDSGD keeps trending downward, sliding under $1.3400 and on toward $1.3370 with next potential support on trend near $1.3340 then a measured $1.3200. Falling RSI confirms downward momentum. 

USDJPY is breaking out today! Pair driving up through the 105.00 to 105.35 congestion zone and on toward 105.90 with next potential resistance near 106.40 then 107.60. RSI climbing toward 50 indicates downward momentum fading fast.

GBPJPY is roaring higher today up from near 153.80 blasting through 154.40 recent resistance, the 155.00 round number and its 50-day average near 156.80 on its way toward the 157.00 to 158.00 area with next resistance near the 160.00 round number. RSI regaining 50 confirms the upturn in momentum.

EURJPY is breaking out today, soaring up from 118.00 through the 120.00 round number and on toward 120.70 with next potential resistance at the 50-day average near 122.15. RSI nearing 50 where a breakout would confirm an upturn in momentum.

CADJPY is turning upward again, surging from 81.00 up through 82.45 a Fibonacci level and climbing on toward 83.10 with next potential resistance in the 84.20 to 84.50 area between its 50-day average and a retracement test. RSI testing 50 where a breakout would confirm an upturn. 

USDCAD has resumed its downtrend, driving down from its 50-day average near $1.2850 through $1.2740 recent support on toward $1.2680 before bouncing back to retest the breakdown point as new resistance. RSI indicates downward momentum increasing.