Chart Signals: Gold and NZD rally through broad consolidation

It’s been a day of backing and filling for many markets with two exceptions, NZD continued its breakout rally although a retrenchment can’t be totally ruled out. Gold also continued to rally strongly within a wide trading range.

It’s been a day of backing and filling for many markets with two exceptions, NZD continued its breakout rally although a retrenchment can’t be totally ruled out. Gold also continued to rally strongly within a wide trading range.

Asia Pacific Indices

Australia 200 is dropping back within a 5,250 to 5,430 trading range recently trading near 5,335 a Fibonacci level. RSI slipping under 50 confirming a downswing underway.

Japan 225 continues to trend sideways in a wide range between 16,255 and 17,145. Recently it has been trading between its 50-day average near 15,.535 and a Fibonacci level near 16,815. RSI sitting on 50 confirms neutral momentum.

Hong Kong 50 is consolidating recent gains between 21,360 and 21,420 well above its 21,00 breakout point while digesting a big rally and working off an overbought RSI.

North American and European Indices

US 30 is still having trouble with resistance at the 18,000 round number but is attracting support at a higher level in the 17,940 to 17,980 zone. This plus RSI above 50 and still trending upward indicates underlying accumulation intact.

US NDAQ 100 continues to trend sideways between 4,500 Fibonacci and round number support and 4,550. RSI falling back toward 50 indicates upward momentum shifting toward neutral and overbought conditions easing through consolidation. 

US SPX 500 is retesting its recent 2,112 breakout point as support with more possible near 2,100. RSI level near 60 suggests a pause underway within an uptrend. Resistance in place near 2,122 then 2,135.

UK 100 continues to struggle with 6,300 resistance but remains supported above 6,220 and its 50-day average trading between there and 6,250. RSI holding 50 indicates underlying uptrend intact through this correction.

Germany 30 is rolling over, dropping back from near 10,215 back toward the 10,060 to 10,110 area to test its 200-day moving average. RSI testing 50 which could confirm its underlying uptrend or signal a downturn. Next support possible near the 10,000 round number.

Commodities

Gold continues to advance rallying up off $1,256 toward the $1,268 to $1,272 zone with next potential resistance near $1,282 a Fibonacci level. RSI above 50 and rising confirms upward momentum increasing.

Crude Oil WTI ran into resistance near $51.40 and had dropped back toward $50.60 in normal backing and filling to deal with an overbought RSI. It remains in an uptrend holding above support near $50.00 a recent round number breakout point.

FX

US Dollar Index has stabilized in the 93.40 to 94.00 range with RSI steady near 40 suggesting downward pressure levelling off. Initial resistance at the 50-day average near 94.55 with next support around 93.00.

EURUSD is getting knocked back down falling from a lower high near $1.1420 back toward $1.1330 and a test of its 50-day average which has become support after a rally earlier this month. RSI rolling over from 60 suggests upward momentum weakening and a downswing within a sideways trend possible. Next support possible near $1.1225

GBPUSD continues to trend sideways with the potential for pops in both directions. Cable has slipped back under $1.4500 after meeting resistance near $1.4600 yesterday but is holding above its 50-day average near $1.4400 stabilizing in the $1.4450 to $1.14470 area.

NZDUSD exploded to the upside yesterday blasting through the $0.7000 round number and soaring into the $0.7120 to $0.7140 area. next resistance possible near $0.7195 a 62% retracement of a previous downtrend.

AUDUSD has stumbled after running into round number resistance near $0.7500 sliding back through its 50-day average near $0.7470 and on toward $0.7425. so far this appears to be a temporary setback within an uptrend as long as it holds above $0.7390.  

USDSGD found some support near $1.3435 and has popped back up above $1.3500 into the $1.3510 to $1.1540 zone with net resistance possible at its 50-day average near $1.3600. RSI stabilizing suggests recent downdraft may be ending.

USDJPY continues to stabilize between 106.30 and 106.80 with higher lows in the pair and the RSI suggesting that the recent downward pressure may be subsiding. Initial rebound resistance tests appear near 107.00, 108.00 and the 50-day average near 109.15.

GBPJPY appears to be trying to build a base between 153.00 and 156.00 recently trading near 154.50 the middle of the range with RSI suggesting downward momentum flattening out. Upside resistance in place at the 50-day average near 157.15. 

EURJPY has bounced up from 120.30 toward 121.00 but it remains in a downtrend of lower highs trading well below 122.00 and its 50-day average near 123.30. With RSI indicating ongoing downward pressure, the 120.00 round number could still be tested.

CADJPY is starting to roll over again with the pair stalling short of 84.55 Fibonacci resistance and the RSI faltering at 50 confirming its broader downtrend remains intact. Initial support levels appear near 83.50 then 82.50.