Although indices in the US have been up slightly on the day, signs of exhaustion for stocks continue to set in. Double tops are forming in the US NDAQ 100 and Hong Kong 50 while still intact for the US 30 and US SPX 500. In currency action, resource dollars are attracting renewed attention with CAD and NZD breaking out and AUD still under accumulation.
Asia Pacific Indices
Australia 200 continues to roll over, unable to regain 5,800 following a breakdown. RSI under 50 and trending lower confirms distribution. Trading near 5,770, next potential support appears near 5,665 then 5,600 the 200-day average.
Japan 225 looks like it has peaked with resistance falling from 20,000 toward 19,780. RSI also rolling down from a lower high indicates a top forming as upward momentum fades. Recently trading near 19,690, initial potential support appears near 19,500 then 19,400.
Hong Kong 50 appears to be forming a double top, failing to break through 25,500 its recent peak. RSI suggests upward momentum levelling off. Initial correction support possible near 25,295 then 25,055.
North American and European Indices
US 30 continues to test 21,000, climbing up from 20,940. Resistance remains in place near 21,130. RSI has regained 50 but remains in a downtrend of lower highs indicating upward momentum weakening overall. Initial downside support possible at the 50-day average near 20,765 followed by 20 625.
US SPX 500 is testing resistance in the 2,400-2,405 area, still struggling to get through. RSI trending downward indicates weakening upward momentum and a pending downturn. Initial support possible near 2,380 followed by the 50-day average near 2,370.
US NDAQ 100 is bumping up against 5,722 resistance and appears to be forming a bearish double top. RSI levelling off at a lower level indicates upward momentum fading. Initial correction support possible near 5,635 then 5,580, 23% and 38% Fibonacci retracements of the recent upleg.
UK 100 is holding steady just above 7,500. It continues to consolidate a recent breakout between 7,450 and 7,540. Higher lows in the price indicate the underlying uptrend remains intact, but lower highs in the RSI suggest upward momentum may have peaked.
Germany 30 is still slowly drifting downward, sliding into the 12,620 to 12,660 zone form a lower high near 12,710. RSI falling toward 50 indicates upward momentum weakening and a downturn pending with next potential support near 12,465 then the 50-dya average near 12,305.
Gold is hanging around $1,250 consolidating a recent upswing between $1,244 and $1,264. RSI sitting on 50 confirms sideways momentum. Next resistance near $1,270 with next support near $1,237.
WTI remains in an upswing but has dropped back toward $51.90 after encountering some resistance near $51.55, potentially setting a lower high, down from $53.45 back in April, although RSI indicates upward momentum still increasing. Initial support in a downturn possible near $50.00.
US Dollar Index is back up above 97.00 having found support near 0.9660. RSI suggests downward pressure flattening out for now. Recently trading near 97.15, initial resistance appears near 97.80.
EURUSD appears to be stabilizing near $1.1200 having encountered resistance near $1.1275. The pair may need to consolidate recent gains in the near term and work off an overbought RSI. Initial support possible near $1.1095 a 23% retracement of the recent advance.
GBPUSD remains in an uptrend but appears to be entering a normal consolidation phase trading between $1.2900 and $1.3050. Initial support near $1.2940 with initial resistance at the $1.3000 round number.
NZDUSD is building on yesterday’s breakout over $0.7000, with support rising toward $0.7020 and the pair advancing on $0.7055. Rising RSI confirms increasing upward momentum. Next potential resistance at the 200-day average near $0.7105.
AUDUSD is sending mixed signals, it remains in an uptrend with higher lows for the index and a rising RSI indicating continuing accumulation. The index continues to attract support above $0.7465 but it’s struggling to overcome resistance at $0.7500 followed by $0.7535.
USDSGD is consolidating recent losses between $1.3835 and $1.3920 trading near $1.3870. RSI flattening near 40 suggests recent slide wending and a consolidation phase within a downtrend starting. Next downside support appears near $1.3810 a Fibonacci level.
USDJPY continues to bounce around between 110.65 and 112.15 two Fibonacci levels, recently trading near 111.75. RSI sitting on 50 confirms sideways momentum.
GBPJPY is still drifting back downward, having confirmed resistance at a lower high near 145.45. The pair has fallen back under 145.00, sliding toward 144.70 with next potential support near 143.60 and 143.30 a 38% retracement of the previous uptrend.
EURJPY has levelled off near 125.00 settling into a 124.00 to 125.85 trading range. RSI topping at a lower high indicates upward momentum weakening and a pause or correction to work off a previously overbought RSI underway.
USDCAD is breaking down today, taking out the $1.3500 round number and its 50-day average to signal the start of a new downleg. The pair has dropped into the $1.3420 to $1.3470 range with next potential support near $1.3370 then the 200-day average near $1.3300. RSI under 50 and falling confirms increasing downward momentum.
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