USD is breaking out in a big way this week against a broad basket of currencies including GBP, JPY, gold, AUD, NZD and SGD. Despite USD headwinds, WTI continues to attract strong support, clearing the big $50.00 round number barrier in trading today.
Asia Pacific Indices
Australia 200 is bumping up against 5,500 again climbing up off its 50-day average near 5,445 while rising RSI confirms upward momentum increasing. Next potential resistance near 5,565 then 5,600 with more support near 5,400.
Japan 225 failed to break through 17,000 round number resistance but held higher support near 16,825 a Fibonacci level to keep its uptrend intact. The index has rebounded toward 16,950 with next potential resistance on a breakout possible near 17,145.
Hong Kong 50 is bumping up against 24,000 round number resistance with support rising toward 23.900 and next potential resistance near 24,445 a previous peak. RSI holding 50 and rising confirms underlying uptrend intact and resuming following a correction.
North American and European Indices
US 30 is hanging around between 18,000 and 18,400 trading below its 50-day average. RSI on 50 confirms sideways trend within which the index has bounced around between 18,310 and 18,150 today.
US NDAQ 100 continues to struggle with 4,900 resistance while retaining support well above its 50-day average near 4,800. The pair is trading between 4,865 and 4,885 today bouncing around 4,875. RSI indicates upward momentum steady currently.
US SPX 500 remains stuck below its 50-day average near 2,170 trading between 2,154 and 2,162 with support possible near 2,140 then 2,120. RSI flat on 50 confirms sideways momentum.
UK 100 continues to test 7,000 as new support following a breakout with more possible near 6,925 a previous breakout point. RSI had neared overbought levels so this looks like a normal trading consolidation below resistance near 7,050 then 7,135.
Germany 30 ran into resistance near 10,640 and has dropped back into the 10,540 to 10,600 range. While the index holding 10,500 remains encouraging lower highs for the index and the RSI suggest the recent upswing may be ending and distribution resuming.
Gold is breaking down again, taking out its 50-day average near $1,260 and diving down toward $1,250 round number and Fibonacci support. RSI getting deeply oversold increasing the potential for a trading bounce although it continues to confirm downward momentum for now.
Crude Oil WTI is trying to break through formidable $50.00 round number and channel resistance trading near $50.30 up from $49.00. Rising RSI indicates upward momentum still increasing with next potential resistance on a breakout near $51.35.
US Dollar Index is breaking out today! Index has cleared 96.30 to complete an ascending triangle and signal the start of a new upleg that could potentially challenge a measured 97.90. Rising RSI confirms upward momentum increasing.
EURUSD is starting to roll over again, with the pair dropping back under $1.1200 and the RSI back under 50 to indicate renewed distribution. Uptrend and 200-day average support in place near $1.1165 followed by $1.1111.
GBPUSD is under pressure again falling from near $1.2730 toward $1.2630 with next potential support near a measured $1.2600. Although RSI is getting oversold, it is also confirming downward momentum increasing so a test of $1.2500 can’t be ruled out.
NZDUSD confirmed its breakdown below $0.7195 with a retest of the Fibonacci level as resistance and continues to retreat, falling into the $0.7140 to $0.7170 area with next potential support near $0.7100 then $0.7015. Falling RSI confirms downward pressure increasing.
AUDUSD is breaking down today, taking out its 50-day average near $0.7600 and falling toward $0.7560 with next potential support near the $0.7500 round number. RSI falling under 50 confirms momentum turning downward.
USDSGD is breaking out today! Pair has cleared its 200-day average near $1.3710 signalling the start of a new uptrend and completing an ascending triangle base. Next potential in the $1.3800 to $1.3825 area.
USDJPY continues to advance, rallying up from near 103.40 toward 104.00 with next resistance possible near 104.15 then 105.00 and support rising toward 103.80. RSI confirms upward momentum increasing.
GBPJPY is still hanging around the 131.00 to 131.80 area holding above 130.00 support keeping a triple bottom intact above 128.50. Resistance remains in place near 132.70.
EURJPY has levelled off near 116.00 just below 116.60 where channel resistance remains in place. Rising RSI indicates upward momentum still building. Next resistance on a breakout possible near 118.00 a 38% retracement of a previous downtrend.
USDCAD continues to trend upward, testing the top of a $1.3050 to $1.3220 range between its 50 and 200-day averages. RSI indicates momentum turning increasingly upward. Next resistance possible near $1.3310 with initial support near $1.3180.
USDMXN has levelled off near 19.25 above 19.10 Fibonacci support and below 19.42 then 19.52 initial resistance. RSI holding 50 suggests recent slide may be a normal trading correction within an ongoing uptrend.
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.