A shift in capital back into defensive havens has sparked a number of big technical moves, with gold completing an ascending triangle, the USD completing an Evening Star, JPY breaking out against USD (under 110) and EUR, and GBP taking a run at $1.2500 against USD. The Australia 200 is breaking out again today, while the UK 100 is trying to call off a head and shoulders top but other major indices remain under pressure with the Hong Kong 50 failing to hold 24,000.
Asia Pacific Indices
Australia 200 is rallying again today, confirming yesterday’s breakout with support moving up to that level while the index advances on 5,945. Next potential resistance appears near 5,965 then 5,990 to 6,000 where a measured move and round number converge.
Japan 225 remains under distribution with resistance falling from 18,835 a broken channel bottom toward 18,735. The index has dropped into the 18,560 to 18,650 area with next potential support near 18,500. RSI under 50 and falling indicates downward momentum accelerating.
Hong Kong 50 is testing the 24,000 round number where a breakdown would complete a descending triangle of lower highs above that level. The index has dropped from near 24,130 toward 23,970 an the 50-day average with next potential support near 23,830. RSI breaking under 50 signals momentum turning downward.
North American and European Indices
US 30 is breaking down today, falling under its 50-day average near 20,625 toward 20,610 with next potential support near 20,500 then 20,380. RSI falling away from 50 indicates momentum turning increasingly downward.
US SPX 500 has broken down under 2,350 and its 50-day average falling toward 2,340 but still trading within a sideways consolidation triangle between 2,330 and 2,380. RSI trending downward and falling under 50 indicates momentum turning downward.
US NDAQ 100 is rolling over again, falling under 5,400 toward 5,390 with next potential support at its 50-day average near 5,350. RSI falling toward 50 signals a downturn in momentum pending.
UK 100 is on the move back upward today rallying from 7,320 toward 7,400 where it is retesting shoulder resistance of a head and shoulders top. A move up from here would call off the pattern with next resistance near 7,440 then the 7,500 round number. RSI climbing up off 50 indicates upward momentum resuming.
Germany 30 remains in an uptrend above 12,000 but at the same time, appears to be rolling over with resistance falling from 12,280 toward 12,200. RSI falling toward 50 indicates upward momentum slowing with a downturn pending.
Gold is breaking out of an ascending triangle today, rallying up from $1,255 through $1,260 and $1,270 on its way toward $1,275. RSI breaking out of a downtrend confirms upward momentum accelerating. Next potential resistance in the $1,290 to $1,310 area.
Crude Oil WTI has encountered resistance near $53.00 and appears to be pausing in the $52.50 to $53.10 consolidating several days of gains. Next support possible near $52.00 with next resistance near $53.70.
US Dollar Index failed to hold above 101.00 and has fallen back toward 100.60 as an Evening Star candle pattern forms. RSI also suggests upward momentum may be peaking for now. Next potential support near 100.40 then 100.00.
EURUSD has bounced up toward $1.0610 having found some support near $1.0580. RSI holding 40 suggests an uptrend emerging. Next potential resistance near $1.0660 where the 50-day average and a Fibonacci level converge.
GBPUSD has broken out of a short-term downtrend, clearing $1.2460 as it rallies up off of $1.2400 higher support. The pair is advancing on the $1.2500 round number which it needs to clear to confirm an upturn. Next potential resistance near $1.2555 then $1.2600. RSI basically holding 50- confirms underlying uptrend remains intact.
NZDUSD remains under distribution with the pair still under $0.7000, the RSI still well under 50 and both still trending downward. Recently trading in the $0.6930 to $0.6970 area, next potential support appears near $0.6900 then $0.6820.
AUDUSD is still sitting on $0.7500 trying to decide if a base is forming or if this is a pause within a bigger downswing. Next potential support near $0.7430 then $0.7380 with initial resistance on a bounce near $0.7550 the 200-day average then $0.7600.
USDSGD ran into resistance at its 50-day average and a Fibonacci level near $1.4090 and has dropped back toward $1.4040. RSI faltering at 50 suggests its broader downtrend may be resuming with next support possible near $1.4000 then $1.3945 a Fibonacci test.
USDJPY is breaking down in a big way today, with a drop under 110.00 confirming the start of a new downleg and resuming its broader downtrend. Next support on a breakdown possible near at a Fibonacci cluster between 109.00 and 109.25 then the 200-day average near 108.65. Falling RSI confirms downward pressure increasing.
GBPJPY continues to steadily decline with RSI steady under 50 indicating consistent distribution. The pair has dropped from 137.70 toward 136.90. A break under 136.70 would complete a bearish descending triangle with next potential support near 134.90.
EURJPY is breaking down today, taking out its 200-day average near 117.70 and diving down toward 116.30 to signal a downturn with next potential support near 116.00 then 115.70 and 115.00. RSI getting oversold but still confirming increased downward pressure.
USDCAD continues to roll over, with resistance falling toward $1.3360 from $1.3430 and the pair falling toward $1.3310. RSI falling back under 50 signals momentum turning downward. Next potential support near $1.3275 and the 50-day average.