Early in the day US markets continued to dominate with the US Dollar mowing down everything in its path like a hurricane and breaking out to a new all-time high while the US 30 took another run at 20,000. As the day has progressed, however, stocks have started to backslide again while the USD has relented a bit, taking some of the pressure off gold, JPY, EUR, GBP and CAD for the momentum. NZD, SGD and AUD also appear to be rebounding from earlier weakness.
Asia Pacific Indices
Australia 200 failed to retake 5,600 confirming channel resistance and had started to retreat, falling into the 5,530 to 5,550 area with next potential support near 5,500 then 5,445. RSI falling away from 70 indicates upward momentum weakening.
Japan 225 remains in an uptrend even though it has dropped back from near 19,540 toward 19,400 in what looks like a normal trading correction. RSI remains really overbought so a pullback possible with next support near 19,150 then 19,000 and next resistance near the 20,000 round number.
Hong Kong 50 is testing the bottom of its 22,000 to 23,000 trading range bouncing back up toward 22,100. On a breakdown the 200-day average near 21,760 could be tested with next bounce resistance near 22,280. Falling RSI indicates downward pressure increasing.
North American and European Indices
US 30 continues to show signs of topping with a rally attempt failing at a lower high near 19,950 and the index dropping back into the 19,820 to 19.870 area as it falls away from 20,000. RSI way overbought indicates high correction potential with next support near 19,755 then 19,595.
US SPX 500 is starting to roll over trading near 2,255 having run into resistance near 2,280. RSI falling back under 70 from overbought signals a correction starting with next potential support near 2,245 then 2,220 a 23% retracement of the recent rally.
US NDAQ 100 is still holding above 4,900 its recent breakout point but its advance toward 5,000 appears to have stalled short with resistance emerging near 4,955 and the index dropping back toward 4,920. Next downside support possible near 4,875 in a pullback.
UK 100 tried to break out over 7,000 but ran into resistance near 7,010 and has started to retreac sliding toward 6,980 with next potential support near 6,925. It continues to trade within a broader 6,870 to 7,040 range. RSI confirms sideways momentum.
Germany 30 remains under accumulation rallying up off a higher low near 10,200 and then breaking out over 10.340 resistance on its way toward 10,400 with next potential resistance near 11,445 then 11,500 and a measured 10,640. RSI near overbought.
Gold is getting crushed for a second straight day building on its breakdown below $1,150 by diving from $1,138 toward the $1,120 before bouncing back toward $1,130. RSI extremely oversold but downward pressure still increasing.
Crude Oil WTI has staged a correction but the price holding $49.80 and climbing back up into the $50.40 to $51.40 area indicates its underlying uptrend remains intact for now. Next support and resistance near $49.50 and $52.50 respectively.
US Dollar Index has a major breakout underway today clearing 102.00 and rallying toward 103.50 with next potential resistance near a measured 104.20 before sliding back toward 103.00. RSI rising up off 50 confirms momentum turning upward once again.
EURUSD is breaking down in a big way today, taking out $1.0500 to signal the start of a new downleg with RSI under 50 and falling confirming increasing downward momentum. The pair has dropped into the $1.0370 to $1.0440 area with next potential support near a measured $1.0320.
GBPUSD is breaking down today, taking out uptrend support near $1.2535 causing an ascending triangle to fail then the $1.2500 round number on its way toward a $1.2380 low before rebounding toward $1.2440. Next support in the $1.2350 to $1.2400 area between a channel bottom and the 50-day average.
NZDUSD is testing $0.7000 round number support and $0.7015 Fibonacci support which have held so far with more support possible near $0.6980. The pair has bounced back toward $0.7040 with next resistance near $0.7080. RSI under 50 suggests momentum turning downward.
AUDUSD remains under pressure falling below $0.7400 and on toward the $0.7340 to $0.7370 area with next potential support near $0.7300 the bottom of a broad trading channel. RSI falling away from 50 indicates downward pressure increasing.
USDSGD broke out over $1.4355 to signal the start of a new upleg an spiked up toward $1.4480 within striking distance of the $1.4500 round number but has since dropped back toward $1.4420. RSI rising to confirm upward momentum but a negative divergence suggests uptrend may be near exhaustion.
USDJPY is screaming higher again today continuing its rocket blast up off 115.00 rallying from 117.00 to a peak near 118.60 before dropping back into the 117.80 to 118.10 area. RSI extremely overbought but so far traders don’t seem to care. Next resistance possible near the 120.00 round number with initial support near 117.60.
GBPJPY spiked up toward 148.65 before running into resistance and sliding back toward where it started near 146.40 a Fibonacci level. RSI extremely overbought and a negative divergence indicate rally could be near exhaustion and a correction possible. Initial resistance near 146.90 then 147.40 with next support possible near 145 00 then 143.40 and the 200-day average.
EURJPY took a run at 124.00 where it ran into resistance and has been knocked back toward the 122.60 to 123.00 area. RSI falling under 70 signals a correction starting while a negative divergence indicates upward momentum may have peaked. Next support at the 50-day average near 122.00.
USDCAD has rallied up from its 200-day average near $1.3070 toward $1.3420 before settling back toward its 50-day average near $1.3340 trading above $1.3300 a Fibonacci level and near $1.3360. RSI back above 50 signals momentum turning upward with next resistance near $1.3390 then $1.3435.
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.