Chart Signals: Indices get a big boost from nonfarm payrolls

Indices captured the spotlight Friday with the S&P taking a run at its all-time highs on the back of a strong US nonfarm payrolls report. Improving confidence has carried through to Asia Pacific trading to start the week

Indices captured the spotlight Friday with the S&P taking a run at its all-time highs on the back of a strong US nonfarm payrolls report. Improving confidence has carried through to Asia Pacific trading to start the week 

Asia Pacific Indices

Australia 200 is challenging downtrend resistance lines on both the index and the RSI having rallied Friday. A breakout over 5,300 would confirm the start of a new upswing with next potential resistance near 5,335 a Fibonacci level then 5.385.

Japan 225 has stabilized above 15,000 with RSI flattening near 40 indicating downward pressure peaking as well and a rebound possible. Recently trading between 15,330 and 15,410 with next resistance near 15,555 then 15,835.

Hong Kong 50 finished strong Friday rallying from near 20,860 toward 20,880 with RSI confirming an upswing in momentum. Next potential resistance near 21,000 then 21,230 a recent high.

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North American and European Indices

US 30 finished the week strong blasting through 18,000 and advancing on 18,150 its 52-week high with next potential resistance at the May 2015 high near 18,360. 

US NDAQ 100 held 4,440 support and rallied toward 4,530, clearing 4,500 a round number and Fibonacci test in the process. RSI rising off 50 indicates upward momentum increasing. Next potential resistance near 4,545 then 4,575.

US SPX 500 is challenging its all-time high near 2,137 having rallied up off 2,100 and clearing 2,020. RSI mixed with recent advances encouraging but a longer term downtrend still intact indicating weakening upward momentum.

UK 100 continues to attract support above 6,500 following a successful retest of the 6,450 recent breakout point. Index is advancing on 6,600 with next potential support resistance near 6,630.

Germany 30 appears to be under accumulation, advancing from a higher low near 9,380 through 9,500 an on toward the 9,610 to 6,640 area with next upside resistance possible near 9,720 then 9,820.

 

Commodities

Gold found support near $1,355 where successfully retested its June high to keep its uptrend intact and then rallied toward $1.366. It remains below its recent high near $1.376 with more resistance possible near $1,400. It could struggle making headway with an overbought RSI indicating potential for a correction.

Crude Oil WTI has stabilized near $45.00 after being pounded down from $48.00 Thursday. Initial resistance near $45.50 then $46.00 and $47.60 with next support near $44.85 and $43.50.

FX

US Dollar Index continues to hold steady just above 96.00 trading in a 95.55 to 96.55 channel.

EURUSD continues to struggle with $1.1100 and its 200-day average drifting back toward the $1.1040 to $1.1060 area with next support in place near the $1.1000 round number then $1.0900. RSI still under 50 confirms downward momentum. 

GBPUSD took another run at $1.3000 which remains a formidable resistance level with the pair finishing the week in the $1.2930 to $1.2970 area. Next resistance possible near $1.3100 with more support near $1.2900. Oversold RSI suggests potential for a trading bounce.

NZDUSD keeps screaming higher but now has a big resistance test underway at $0.7300 which could end in a breakout or a double top. A breakout could challenge a measured $0.7500 over time. Support moves up toward $0.7240 from $0.7195. RSI not overbought and confirms increasing upward momentum.

AUDUSD continues to trend upward, regaining $0.7500 and advancing on $0.7570 with next potential resistance in the $0.7600 to $0.7650 area near its June highs. RSI sending mixed signals with a head and shoulders top forming. 

USDSGD continues to bounce around $1.3500 within a $1.3440 to $1.3540 range. RSI under 50 and the pair below its 50-day average indicates broader downtrend still intact for now with next support possible near $1.3405. 

USDJPY continues to test the 100.00 round number but support has been holding there with more possible near 99.00 as an oversold RSI suggests potential for a bounce. Initial upside bounce tests near 100.60 then 101.75 and 103.50.

GBPJPY is sitting on the 130.00 round number where it appears to be trying to stabilize after a big selloff. Oversold RSI suggests potential for a trading bounce with initial resistance near 132.50 then 136.10 with more support near 128.25.

EURJPY remains in a downtrend, drifting toward 111.00 with support possible in the 109.00 to 110.00 area. An oversold RSI and a positive divergence suggests current downtrend weakening and an upward reversal possible. Initial rebound resistance possible near 112.80 then 114.75.

CADJPY remains under pressure falling back toward 77.00 with a retest of the June low near 76.00 still possible. Initial resistance on a bounce near 77.60 or 78.40 both previous lower highs. 

USDCAD climbed back above  $1.3000 a round number and Fibonacci level but didn't get very far running into resistance near $1.3070 and dropping back toward $1.3040 although higher lows indicate an ascending triangle forming below $1.3100.