Many of the big tops and bottoms that have been forming in major forex pairs lately were completed today with a series of major breakouts in gold, JPY, EUR, AUD, CAD, NZD, SGD and others. Even more significantly, many of these breakouts have been confirmed by crossings of the 50 line in RSI indicators. This signals that a sea change in sentiment has occurred in currency markets with the US Dollar index breaking down to signal the start of a long overdue correction.
Asia Pacific Indices
Australia 200 has started to level off, pausing to digest recent gains and work off an overbought RSI in the 5,740 to 5,770 range. Next resistance possible near 5,800 with next support in a correction possible near 5,675.
Japan 225 has started to roll over with JPY bouncing back, and appears to have completed a double top near 19,665. The index has fallen back under 19,500 with next support in the 19,380-19,440 area followed by 19,270. RSI indicates upward momentum fading and a correction starting.
Hong Kong 50 continues to climb, clearing its 50-day average and 22,500 while RSI back above 50 confirms an upswing underway. The index has advanced from 22,460 toward 22,530 with next potential resistance near 22,660.
North American and European Indices
US 30 remains stuck below the 20,000 big round number running into resistance near 19,940 then sliding back into the 19,820 to 19,900 area with next support possible near 19,720. RSI back under 70 and trending lower indicates upward pressure weakening and a correction starting.
US SPX 500 continues to struggle with 2,277 resistance slumping back into the 2,265 to 2,271 area with next potential support near 2,252 then 2,244. Lower highs in the RSI indicate upward momentum fading and a correction underway.
US NDAQ 100 is holding steady above 4,900 climbing from near 4,925 toward 4,960 advancing toward the high end of a sideways range between its 50-day average near 4,940 and the 5,000 round number. Support rises toward 4,940 from 4,920 while RSI bouncing off 50 confirms underlying accumulation remains intact.
UK 100 peeked up above 7,200 briefly but has slipped back toward 7,195. With RSI overbought the recent rally looks tired and a correction possible with initial support near 7,180 then 7,105.
Germany 30 continues to pause at a higher level in the 11,550 to 11,600 range below 11,.650 resistance but also above its 11,500 recent breakout point while trying to work off an overbought RSI.
Gold is breaking out today! The price has cleared $1,172, a Fibonacci level completing a saucer bottom base. RSI has already regained 50 to signal an upturn in momentum. Next potential resistance appears near $1 188 then the 50-day average near $1,200 with support rising toward $1,180.
Crude Oil WTI has resumed is uptrend following a correction that ended with support coming in at a higher low near $51.60. The price has advanced from near $52.60 toward $53.60 today with next potential resistance near $54.25 and $54.65 and initial support rising toward $53.00.
USDCNH has plunged for a second straight day, diving from near 6.9000 toward 6.7900 after a rally stopped short of the 7.0000 round number. The pair could settle into a range between 6.7700 and 6.8115 the 50% and 62% Fibonacci retracements of its previous advance.
US Dollar Index is breaking down today taking out the bottom of the 102.00 to 103.50 range where it had been peaking. RSI falling under 50 confirms the downturn and signals the start of a new downtrend with next support possible near 101.40 then 100.65 and the 100.00 round number.
EURUSD is breaking out today! The pair has rallied up through $1.0500, decisively clearing $1.0585 a Fibonacci level that has become higher support with next resistance near $1.0610 then the 50-day average near $1.0660 and a Fibonacci test near $1.0720. RSI retaking 50 confirms momentum turning upward.
GBPUSD is starting to rebound, breaking out of the $1.2200 to $1.2400 zone where it had been base building. It needs to clear resistance at its 50-day average near $1.2425 to confirm the start of an upswing with next potential resistance near $1.2500 then $1.2540. RSI regaining 50 confirms momentum turning upward.
NZDUSD is breaking out of a saucer bottom base today retaking $0.7000 and advancing on $0.7040 with next potential resistance near $0.7080 where the 50 and 200-day averages converge. RSI retaking 50 signals momentum turning upward.
AUDUSD is breaking out of a rounded bottom base today, clearing $0.7300 and advancing on $0.7350 with next potential resistance near $0.7370 then $0.7420. RSI regaining 50 confirms an upturn in momentum underway.
USDSGD is breaking down in a big way today taking out $1.4400 and diving down into the $1.4280 to $1.4300 area and approaching a test of its 50-day average plus a Fibonacci level in the $1.4240 to $1.4260 zone. RSI breaking under 50 signals momentum turning downward.
USDJPY is breaking down today taking out 116.25 to complete a double top that peaked near 118.60. The pair has fallen into the 115.30 to 115.70 range around a Fibonacci level with next potential support near 114.05 a Fibonacci test. RSI probing 50 means confirmation of a trend change pending.
GBPJPY is trading in the 142.60 to 143.80 range as it continues to slide toward the bottom of its current 142.25 to 146.45 trading range and a potential test of 200-day average support. RSI testing 50 where a break would confirm a downturn in momentum. Next support possible near 140.00 where a round number and the 50-day average converge.
EURJPY has dropped back from near 123.20 toward 122.20 but essentially still appears to be bouncing around the centre of a 121.00 to 124.15 sideways range. RSI drifting toward 50 indicates a downshift in momentum from upward to neutral.
USDCAD continues to break down, taking out $1.3300 a Fibonacci level and continuing down toward the $1.3200 to $1.3240 area with next potential support near $1.3105 and the 50-day average. RSI under 50 and falling confirms downward pressure increasing.
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