Looking across today’s comments I’m seeing a lot of positive RSI divergences and overbought/oversold RSI conditions indicating that recent strong pulses were overdone and trading corrections appear to be underway. The Yen in particular has seen some of its recent strength start to erode.
Asia Pacific Indices
Australia 200 has bounced back into the 5,130 to 5,145 range from 5,045 support. A positive RSI divergence indicates downward momentum weakening. Next potential resistance near 5,195 a Fibonacci test then 5,255.
Japan 225 surged up off a successful retest of 15,000 round number support into the 15,450 to 15,570 area. A higher low in the RSI suggests downward momentum fading. Next upside resistance near 15,800 a previous support level.
Hong Kong 50 is turning back upward, retaking the 20,000 round number and rallying on toward 20,300 before dropping back into the 20,150 to 20,210 area in a normal trading correction.
North American and European Indices
US 30 has established support near 17,050 and bounced back above its 200-day average near 17,240 into the 17,250 to 17,330 area with next potential resistance near 17,360 then 17,480.
US NDAQ 100 continues to hold 4,180 support and a trading bounce has rallied back up toward the 4,250 to 4,270 area to correct an oversold RSI with next resistance near 4,275 then 4,305.
US SPX 500 confirmed 2,000 round number support and has started to bounce back although gains have been contained by the 2,020-2,024 area near the 200-day average with next potential resistance near 2,028 and 2,048.
UK 100 is on the rebound again, rallying up off 6,000 round number support into the 6,130 to 6,170 area with next potential resistance at the 50-day average near 6,200. A higher low in the RSI and a positive divergence emerging indicates downward momentum weakening.
Germany 30 is trading in a narrower range today near the high end of yesterday’s range with 9,440 a previous breakdown point emerging as support again and initial resistance near 9,480 then 9,605. A positive divergence in the RSI has emerged indicating downward pressure easing.
Gold successfully retested its $1,304 recent breakout point as new support confirming its new upleg remains intact and has bounced back toward $1,316 with next resistance possible near $1,326. RSI rolling over however suggests upward mo weakening.
Crude Oil WTI has settled into the $46.70 to $47.30 area near its 50-day moving average. RSI bouncing around between 40 and 60 indicates sideways momentum with the price bouncing around in an emerging channel between $45.00 and $50.00. Next resistance near $48.10 a Fibonacci test.
US Dollar Index has levelled off between 96.00 and 96.50, with RSI confirming upward momentum may be peaking. Initial support in a correction possible near 95.80 then 95.00.
EURUSD has been trying to bounce back but so far advances have been blocked at the 200-day average near $1.1100 with next resistance after that in the $1.1190 to $1.1210 area. Pair has dropped back toward the $1.1040 to $1.1060 zone with next support near the $1.1000 round number.
GBPUSD has found support near $1.3300 bouncing up from $1.3260 toward $1.3370 as it starts to correct an oversold RSI. Initial resistance possible near $1.3485 then $1.3640
NZDUSD is holding $0.7000 round support while RSI holding 50 indicates its underlying uptrend remains intact. Initial resistance near $0.7040 then $0.7120 with more support in place near $0.6970.
AUDUSD successfully held $0.7300 and 200-day average support and has started to bounce back, climbing into the $0.7350 to $0.7390 area with next potential resistance near $0.7455 then th3 $0.7500 round number.
USDSGD has slipped back under $1.3600 and its 50-day average into the $1.3540 to $1.3570 area with next potential support near $1.3520 then $1.3500.
USDJPY continues to work its way back upward having established support near 101.50, it has advanced today form near 102.20 toward 102.80 with next potential resistance near 103.55 then 105.00. Positive RSI divergence suggests downward pressure fading.
GBPJPY has paused for a second day trading between 134.75 and 137.25 to work off an oversold RSI with next potential resistance near 139.50 and next support near 133.40. Recent trading has seen the pair break out of a 136.20 to 136.80 channel and advance on 137.10..
EURJPY is starting to rebound, climbing up from a higher low near 111.95 toward the 113.20 to 113.70 area in a trading bounce working to ease an oversold RSI. Next potential resistance in the 115.00 to 115.50 area.
CADJPY has stabilized and started base building in the 77.00 to 79.00 range with next resistance possible near the 80.00 round number.
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.