Indices tried to rebound early on but didn’t get very far and have been sliding in the last few hours with. Australia’s index has started to breakdown and others could follow. EUR also remains under pressure retreating relative to both USD and JPY.
Asia Pacific Indices
Australia 200 is starting to break down with the index falling under 5,400 confirmed by the RSI falling under 50. Next downside support possible near 5,360 then 5,300.
Japan 225 is bumping up against 17,000 again but still is struggling to get though and may keep having problems advancing with a falling RSI indicating upward momentum slowing. Initial support appears near 16,840 followed by 16,675 a Fibonacci level.
Hong Kong 50 successfully tested 23,000 round number support but remains under distribution with RSI under 50 and falling confirming increased downward momentum. Resistance has dropped toward 23,130 from 23,410 with next potential support near 22,760.
North American and European Indices
US 30 remains under distribution sliding toward the bottom of an 18,000 to 18,360 trading range between a round number and its falling 50-day average. RSI under 50 confirms downtrend intact. Recently trading between 18,080 and 18,160.
US NDAQ 100 is trading choppy within 10 points on either side of 4,800. RSI under 50 indicates momentum turning downward with next support possible near 4,740 while initial rebound resistance appears near 4,845.
US SPX 500 has found some support near 2,125 but overall remains under distribution trading between 2,100 and 2,145 the flat and rising necklines of a head and shoulders top. RSI under 50 and falling indicates downward pressure increasing.
UK 100 has slipped back under 7,000 and appears to be trending toward the bottom of a 6,925 to 7,100 range with RSI falling toward 50 indicating upward momentum weakening and a downturn pending. Next potential support on a break near 6,865 and the 50-day average.
Germany 30 is holding just above 10,500 trading near its 50-day average with initial resistance near 10,550 then 10,600 with next support near 10,410 then 10,350. RSI sitting on 50 confirms sideways trend.
Gold continues to trade between $1,250 and $1,262 between a round number and its 200-day average. RSI oversold but rising indicates downward pressure fading and a trading bounce increasingly possible.
Crude Oil WTI is standing steady near the $50.00 level trading in a $49.00 to $51.50 range. RSI indicates upward momentum levelling off and perhaps easing back a bit.
US Dollar Index is holding steady just above 98.00 with next resistance possible near 98.50 and next support near 97.50. An overbought RSI and a negative divergence suggest that upward momentum has peaked and a correction possible.
EURUSD is retesting $1.1000 as new resistance which so far has confirmed Friday’s breakdown. Initial support appears near $1.0960 then $1.0910 with initial resistance near $1.1065. RSI stabilizing above 30 suggests downward pressure levelling off.
GBPUSD has stabilized in the $1.2140 to $1.2200 area with a symmetrical triangle confirming consolidation. A retest of $1.2000 remains possible but at the same time, a deeply oversold RSI indicates potential for a bounce with next resistance possible near $1.2265 then $1.2350.
NZDUSD has stabilized in the $0.7000 to $0.7200 range essentially between two Fibonacci levels recently trading between $0.7100 and $0.7400. RSI climbing toward 50 indicates recent selloff has subsided.
AUDUSD is hanging around $0.7600 and its 50-day average within a wider $0.74425 to $0.7725 sideways channel. RSI back above 50 indicates an upswing in momentum underway.
USDSGD peeked above $1.3900 but was unable to hold it dropping back toward $1.3880. Pair in an uptrend but RSI overbought so a correction remains possible with next support near $1.3800.
USDJPY has levelled off between 103.80 and 104.30 below 105.00 resistance. RSI flattening near 60 also suggests upward momentum may be peaking. Initial correction support possible in the 102.75 to 103.00 area.
GBPJPY continues to stabilize between 124.70 and 128.60 recently trading near the middle of this range around 126.70. RSI indicates downward pressure and oversold conditions starting to ease.
EURJPY is sending mixed signals. Support at its 50-day average near 114.10 has been holding but RSI slipping under 50 suggests increased downward pressure. Next support on a breakdown possible near 112.90 with initial resistance near 14.55 falling from 114.95.
USDCAD is trading near $1.3130 just below its 200-day average near $1.3180 as it continues to fall away from $1.3310 resistance. RSI slipping under 50 confirms momentum turning downward with next potential support near $1.3120 then $1.3080 and $1.2980.
USDMXN is still steady around 19.00 in an 18.80 to 19.10 range. RSI holding 40 indicates the recent correction has ended and its underlying uptrend remains intact. Next downside support possible near 18.76 then 18.56.
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.