Sterling is having a huge day today, breaking out against USD, JPY and especially EUR. WTI in the other hand has gone off a cliff after taking out $45.00 support. JPY is broadly weakening relative to USD, EUR and GBP. Indices are mixed with Japan 225 and Spain 35 breaking out while US indices continue to roll over. AUD and NZD are benefitting from a weakening USD while Australia 200 has been under pressure but looking potentially oversold.
Asia Pacific Indices
Australia 200 is testing support near 5,385 a previous resistance level having dropped down from 5,430. An oversold RSI suggests it could pause in the near term but a lot of damage has been done already. Next potential support near 5,335 a Fibonacci level.
Japan 225 is breaking out today! The index has cleared its 50-day average near 16,900 and has staged an initial test of 17,000 with more resistance possible near 17,050 then the <ay high near 17,255. RSI confirms upward momentum increasing.
Hong Kong 50 tried to break out over 23,225 but failed and may have put in a short-term double top. The index has dropped back toward 23,090 with more support possible near 23,000 then 22,810. RSI suggests upward momentum levelling off.
North American and European Indices
US 30 successfully tested its 50-day average near 18,300 Wednesday and bounced back up toward the 18,430 to 18,470 area where it stalled and then dropped back toward 18,360. Lower highs suggest the index continues to roll over although RSI falling under 50 signals momentum turning downward.
US NDAQ 100 is still stuck below 4,800 resistance trading near 4,780 with support in place near 4,750 then 4,740. RSI falling toward 50 indicates upward momentum fading into neutral.
US SPX 500 continues to bounce around between 2,160 and 2,195 recently trading near 2,165. RSI falling under 50 signals momentum turning downward as a rounded top continues to form above the 50-day average near 2,150.
UK 100 continues to slide, falling toward 6,750 with resistance falling toward 6,770 from 6,820. Next support possible at the 50-day average near 6,700. RSI falling below 50 signals momentum turning downward.
Germany 30 has dropped back from 10,630 toward the 10,550 to 10,570 area. RSI confirms upward momentum slowing but intact for now.
Spain 35 is breaking out today! The index has cleared 8,760, advancing on 8,890 with next potential resistance near the 9,000 round number then 9,116 a 38% retracement of the previous downtrend. Rising RSI confirms upward momentum increasing.
Gold remains under distribution drifting under $1,310 toward support in the $1,290 to $1,300 zone which includes a Fibonacci cluster and a round number. Falling RSI indicates downward momentum still increasing.
Crude Oil WTI has been slammed again with the bottom falling out from under it after the $45.00 level failed. WTI has been smashed down toward $42.70 with resistance falling toward $43.10. RSI indicates downward pressure increasing. Next potential support near $42.50 then $40.95 and $40.00.
US Dollar Index is starting to roll over falling back under 96.00 but holding above 95.45 and 95.00 initial support. RSI testing 50 where a break would signal a downturn in momentum.
EURUSD is rallying up of its 50 and 200-day moving averages and a higher low on trend near $1.1140 toward $1.1200 with next potential resistance near $1.1230 then $1.1300.
EURGBP is breaking down in a big way today taking out 0.8465 a 23% Fibonacci level and its 50-day average to signal a new downtrend confirmed by RSI momentum. Falling toward 0.8440, next potential support appears near 0.8365 then 0.8300.
GBPUSD is breaking out today, clearing its 50-day average near $1.3175 and taking a run at $1.3270 with resistance looming near $1.3315 a 23% retracement of the Brexit selloff then the July high near $1.3470. RSI breaking back above 50 confirms momentum tuning upward.
NZDUSD continues to advance with rallies by the pair up off $0.7195 and the RSI up off 50 indicating accumulation increasing again. Recently trading in the $0.7270 to $0.7290 area, next potential resistance appears at the recent peak near $0.7385.
AUDUSD is on the rebound, having successfully tested $0.7500 round number support the pair has bounced back toward $0.7555 with resistance possible at the 50-day average near $0.7565 then $0.7645. RSI holding 40 suggests downward pressure may have peaked.
USDSGD has dropped back under $1.3600 from $1.3650 while RSI dropping back toward 50 indicates upward momentum fading and a correction starting. Next potential support tests near $1.3555 then $1.3500.
USDJPY continues to advance, confirming the recent breakout over its 50-day average near 102.70. Recently trading near 103.30 next tests appear near 104.45 a downtrend resistance line then 105.00 a round number near a 23% retracement of the previous uptrend.
GBPJPY is breaking out today, clearing 136.00 the 50-day average and 23% retracement level, driving on toward 137.10 with next potential resistance in the 140.00 to 140.50 area between a round number and 38% retracement level.
EURJPY continues to climb, decisively clearing 115.00 and advancing on 115.70 with next potential resistance near 117.25. RSI above 50 and rising confirms upward momentum increasing.
CADJPY is testing its 50-day average near 78.80 where a breakout would confirm the start of a new recovery trend that could challenge the 80.00 round number initially. RSI back above 50 indicates momentum turning upward again.
USDCAD has levelled off near $1.3125 for a rest but rising RSI indicates upward momentum remains intact. Support has moved up toward $1.3100 from $1.3000 with next potential resistance near $1.3200.
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