A late day bout of profit-taking in USD sparked rebounds in a number of currency markets, enabling several pairs to hold above key round numbers including $0.7500 for AUDUSD, $0.7000 for NZDUSD and $1.0500 for EURUSD. US indices still look technically exhausted but remain well supported while Asia Pacific indices like the Japan 225 and Hong Kong 43.
Asia Pacific indices
Australia 200 is sending mixed signals. The pair held 5,700 50-day average support and bounced toward 5,750 as it continues to form an ascending triangle below 5,830. On the other hand, RSI dropping toward 50 suggests uptrend weakening and a downturn possible.
Hong Kong 50 continues to fall away from 24,000 dropping toward 23,650 with next potential support near 23,500 then the 50-day average closer to 23,000. RSI testing 50 where a breakdown would confirm a downturn in momentum.
Japan 225 has dropped back toward 19,500 testing a recent breakout point as new support after failing to overcome channel resistance near 19,700. RSI faltering at 50 confirms sideways trend intact. Next potential support in a pullback possible at the 50-day average near 19,265.
North American and European Indices
US 30 is hanging around the 21,000 big round number trading between 20,960 and 21,040 as it continues to backslide after peaking near 21,155 recently. RSI overbought and rolling over suggests momentum peaking and a correction possible with next potential support near 20,830.
US SPX 500 is showing signs of rolling over on both the index and the RSI, indicating the recent uptrend has peaked and a correction possible. The index has dropped back into the 2,374 to 2,386 area from 2,400 with next potential support near 2,350 then 2,314.
US NDAQ 100 has bouncing around its 5,365 recent breakout point as it falls away from 5,400 back toward 5,370 with next potential support near 5,345 then 5,300. RSI rolling over suggests upward momentum fading and a break of 70 would signal a correction starting.
US Small Cap 2000 has dropped back under 1,400 as it falls away from 1,412 resistance toward the 1,387 to 1,395 area with next potential support at the 50-day average near 1,378 then channel support near 1,345.
UK 100 has slipped back toward 7,365 its recent breakout point after running into resistance near 7,400. RSI rollover suggests upward momentum slowing and a correction possible with next potential support near 7,330 then 7,300.
Germany 30 continues to pause between tis 12,000 round number breakout point and 12,080 recently trading near 12,020. A lower high in the RSI and a negative divergence suggest upward momentum starting to slow. Next resistance near 12,160 with next downside support possible between 11,800 and 11,900.
Gold is coming off a volatile finish to last week which saw it complete a round trip between $1,236 and $1,224 swinging around $1,230 a Fibonacci test. RSI held 50 suggesting its underlying uptrend may still be intact.
Crude Oil WTI has found some support near $52.30, just below its 50-day average near $52.60 and rebounded toward $53.00. Signals are mixed. The price remains in an uptrend above $52.00 and in a sideways channel above $51.00, but RSI falling under 50 suggests momentum turning downward.
US Dollar Index has paused near 102.00 to digest its recent breakout from a cup with handle base as the old 101.65 resistance level becomes new support. Next potential resistance near 102.50 then 103.00.
EURUSD is rallying up off a successful retest of $1.0500 support which has completed a double bottom. The pair has bounced back up toward $1.0570 with next resistance possible near $1.0585 a Fibonacci level then the 50-day average near $1.0620.RSI holding 40 suggests downward pressure starting to ease and an upturn possible.
GBPUSD remains under pressure with falling RSI indicating downward momentum still increasing. Resistance has dropped from near $1.2360 toward $1.2260 with the pair trading near $!.2240 above $1.2220 support with the next test after that possible near $1.2175.
NZDUSD successfully tested the $0.7000 round number, bouncing up toward $0.7050.So far this appears to be a trading bounce within a downswing with next resistance near $0.7100 then the 50 and 200-day averages near $0.7150. RSI under 50 and falling indicates downward pressure increasing. Next potential support near $0.6945 on a breakdown.
AUDUSD found support near $0.7540 holding above the $0.7500 round number plus its 50 and 200-day moving averages. The pair is retesting its $0.7600 breakdown point as resistance but if it can overcome that next potential support may appear near $0.7635. RSI under 50, however, suggests momentum has turned downward, so signals are a bit mixed.
USDSGD ran into resistance at a lower high near $1.4175 and appears to be resuming its downtrend, falling back toward $1.4100 with next support near $1.4085 then $1.4000. RSI holding below 50 indicates longer-term downward momentum remains intact through the recent upward correction.
USDJPY has paused between 114.05 a Fibonacci level and 114.80. RSI levelling off near 60 suggests we could be nearing the top of an aggressive upswing within a sideways channel with resistance near 115.00 then 115.50. Downside support possible near 113.70 then 113.00.
GBPJPY is back to sitting on 140.00 near the middle of a 138.00 to 142.00 sideways channel between two Fibonacci levels plus its 50 and 200-day moving averages.
EURJPY continues to climb with RSI breaking out over 50 confirming the upturn signalled by the pair’s recent break out of a downtrend. The pair is testing 121.00 a Fibonacci level with next potential resistance on a breakout possible near 121.40 then 122.25.
USDCAD appears to be peaking. It broke through $1.3400 briefly but failed to hold above that level completing a bull trap and a bearish shooting star. The pair has started to drop back, falling toward $1.3375. An overbought RSI suggests potential for a correction with next potential support near $1.3330 then $1.3300.
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.