A number of markets finished last week trading near significant round numbers like 20,000 for the US 30, 100.00 for the US Dollar index, $1.2500 for GBPUSD $1,200 for gold and $1.3000 for USDCAD. Other levels that could be tested this week include 19,000 for the Japan 225 and 23,000 for the Hong Kong 50. AUD, NZD gold and WTI crude oil also have been climbing and appear to be approaching the high end of recent trading channels.
Asia Pacific indices
Australia 200 continues to form a descending triangle top of lower highs between 5,600 and 5,800 recently trading near 5,650. RSI has dropped back under 50 to signal momentum turning downward. Next potential support near 5,500 then the 200-day average near 5,430.
Hong Kong 50 appears to be running out of gas with RSI suggesting upward momentum levelling off and the index sliding back to retest 23,000 round number and recent breakout point support before rebounding toward the 23,210 to 23,250 area. More support in place near 23,150 with next resistance possible near 23,480.
Japan 225 is bouncing around the 19,000 level as it continues to fall away from a triple top near 19,640. The index has been trading near 19,100 lately just under its 50-day average with next resistance near 19,300. Next downside support possible near 19,795 then 19,650.
North American and European Indices
US 30 has popped back up from near 19,835 through 20,000 to signal the start of a new upswing. The index has advanced into the 20,050 to 20,070 area with next potential resistance near 20,140. RSI holding 50 and picking up indicates underlying accumulation continues.
US SPX 500 is taking another run at resistance in the 2,300 to 2,305 area having regained 2,282 I a rally up off of 2,272. A head and shoulders top in the RSI indicates upward momentum slowing but so far this appears to be more of a consolidation phase than a top.
US NDAQ 100 is still consolidating recent gains in the 5,100 to 5,180 area trading near 5,160. Next tests outside this range appear near 5,260 on the upside and 5,000 on the downside. RSI back under 70 indicates upward momentum has peaked and is fading.
UK 100 continues to form a saucer bottom between 7,100 and 7,200 with higher lows and RSI climbing back above 50 indicating renewed accumulation. Support has moved up toward 7,165. Next resistance on a breakout possible near 7,250.
Germany 30 is holding steady between 11,630 and 11,670 near the middle of a 11,445 to 11,865 trading range with next support near 11,575 and next resistance near 11,740.
Gold is struggling with resistance in the $1,215 to $1,220 area but at the same time it continues to attract support at a Fibonacci level near $1,211 with more possible near $1,205 then $1,200. RSI still climbing indicates upward momentum still increasing.
Crude Oil WTI is holding on to this week’s gains trading between $53.00 and $53.50 as it continues to creep upward within a $50.40 to $54.20 trading range forming an ascending triangle. RSI holding 50 confirms underlying accumulation remains intact.
US Dollar Index put in a hammer candle Thursday that may have marked the bottom of the recent downswing and confirmed 99.00 support. The index has bounced back up to retest its 100.00 breakdown point which has held after a brief blip up toward 100.30.Should that hold as resistance it would confirm the current downtrend but a breakout would signal the start of a new upswing with next potential resistance near 100.50 then 101.00.
EURUSD continues its trading correction, sliding back from $1.0800 into the $1.0730 to $1.0760 area. So far its underlying uptrend remains intact with $1.0720 Fibonacci support holding and more possible near $1.0640. Next rebound resistance possible at a Fibonacci cluster near $1.0835 where the last advance was contained.
GBPUSD has dipped under $1.2500 but has also found support at $1.2470 with more possible at its 50-day average near $1.2420. If it can regain $1.2500 next resistance looks possible near $1.2540 then $1.2600. RSI holding 50 indicates underlying uptrend remains intact through the current correction.
NZDUSD has paused near $0.7300 trading between $0.7230 and $0.7340 consolidating recent gains. Next potential resistance appears near $0.7400 a channel top and November high.
AUDUSD continues to swing upward, building on its breakout over $0.7800 by advancing toward $0.7685. Next potential resistance appears near $0.7725 then $0.7765 with next support near $0.7560. RSI confirms upward momentum increasing but overbought levels suggests a pause possible at some point.
USDSGD is bouncing around between $1.4055 and $1.4155, a consolidation phase within an ongoing downtrend. RSI under 50 confirms ongoing distribution. Next potential support near the $1.4000 round number.
USDJPY held 112.00 support and the $112.35 Fibonacci level bouncing back up into the 112.90 to 113.10 zone. It remains in a downtrend below 114.05 Fibonacci resistance with next downside support on trend possible near 111.25.
GBPJPY continues to roll over, retesting 142.25 as lower Fibonacci resistance and sliding toward 140.85 with next potential support near 140.00 where a round number and the 200-day average converge, then 139.20. RSI under 50 and falling indicates momentum turning increasingly downward.
EURJPY is trending sideways to downward with the pair near 121.60 while a bearish descending triangle continues to form above 121.00 with next potential support near the 120.00 round number.
USDCAD is hanging around $1.3030 having bounced up off support in the $1.2975 to $1.3000 zone. Initial upside resistance appears near $1.3100 then $1.3135 the 200-day average.
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.