The big technical action today is in WTI crude oil which has broken down causing an ascending triangle and a channel to fail. Gold has also been under pressure and their combined effect, plus that of a higher USD has resource Dollars like NZD, CAD, and AUD along with SGD all back on their heels today.
Asia Pacific Indices
Australia 200 remains in an uptrend, continuing to attract support above 5,700 and trading near 5,750. Ascending triangle of higher lows below 5,820 resistance continues to build. RSI holding 50 indicates underlying uptrend remains intact.
Japan 225 is bouncing around between 19,240 and 19,420 holding above its 50-day average. Ascending triangles forming in both the index above 19,000 and below 19,675 and in the RSI above 50 indicate continuing accumulation. .
Hong Kong 50 looks like it has completed its recent correction having rallied up from 23,560 toward 23,810 then stabilizing near 23,740. RSI bouncing off of 50 indicates underlying upward momentum remains intact.
North American and European Indices
US 30 continues to roll over with the RSI breaking under 70 signalling a correction getting underway. The index has dropped into the 20,880 to 20,920 area with next potential support near 20,830 a previous breakout point then 20,700.
US SPX 500 is increasingly coming under distribution with a trend of lower highs emerging plus RSI falling away from 70 toward 50 indicating momentum downshifting from upward to neutral for now. Resistance drops toward 2,370 with next support near 2,350 then 2,330.
US NDAQ 100 is sitting near the middle of a 2,300 to 2,400 trading channel but is showing signs of breaking down with the index testing an uptrend support line near 2,352 while RSI under 70 and falling indicates a correction deepening.
UK 100 is drifting back toward 7,300 trading near 7,325 as it falls away from 7,400 with resistance sliding toward 7,350. Next support possible at the 50-day average near 7,245.
Germany 30 is still struggling with 12,000 round number resistance sliding back toward 11,940 after a peek up toward 12,020 was rejected. A negative RSI divergence indicates upward momentum slowing. Next potential support kin a pullback possible near 11,905 then 11,700 and the 50-day average.
Gold remains under pressure, falling below its 50-day average near $1,212 toward $1,209 with next potential support in the $1,200 to $1,205 area between a round number and Fibonacci level. Resistance drops toward $1,218 a Fibonacci and support/resistance level. Falling RSI indicates downward pressure increasing.
Crude Oil WTI is staging a major breakdown today, taking out uptrend support near $51.75 and then channel support near $51.00 on its way toward $50.20 and a test of the $50.00 round number. RSI plunging away from 50 confirms a sharp downturn in momentum. Next potential support near $49.80 then the 200-day average near $48.30.
US Dollar Index is bumping up against 102.00 resistance where a breakout would complete an ascending triangle and signal the start of a new upswing with next potential resistance near 102.25 then 102.55. Rising RSI indicates upward momentum accelerating. Initial support rises toward 101.70.
EURUSD is turning lower again with resistance falling toward $1.0585 a Fibonacci level, the pair trading near $1.0550 and a retest of $1.0500 resistance possible. RSI remains below 50 indicating its broader downtrend remains intact and may be accelerating again.
GBPUSD has found some support near $1.2140, bouncing back toward $1.2170 but still well short of $1.2210 where it was trading overnight. It may be forming the right shoulder of a head and shoulders base but still has a lot of work to do.
NZDUSD is getting crushed again falling farther away from its $0.7000 recent breakdown point with resistance falling toward $0.6980 then $0;6940 and the pair trading near $0.6915 with next potential support near $0.6900 then $0.6855 its December low.
AUDUSD remains under distribution with the pair dropping away from $0.7600 to test its 50 and 200-day averages in the $0.7530 to $0.7550 area with next support possible at the $0.7500 round number. RSI under 50 and falling indicates increasing downward pressure.
USDSGD continues to turn back upward with the RSI breaking out over 50 to signal an upturn in momentum while the pair retakes $1.4155 with next potential resistance near $1.4200 then the 50-day average near $1.4225.
USDJPY is still trading near 114.05 a Fibonacci level having bounced up from near 113.60. It continues to trend sideways between 112.00 and 115.00 with next support near 113.55 and next resistance near 114.55.
GBPJPY remains under distribution with resistance falling under 140.00 toward 139.70 as a descending triangle of lower highs above 138.10 which is also near the 200-day average and a Fibonacci level.
EURJPY has broken out of a downtrend and is now trading between 120.00 and 121.00 trying to decide what to do next. A head and shoulders base appears to be forming and with RSI back at 50 accumulation appears to be growing. Next potential resistance on a breakout near 122.00.
USDCAD continues to climb with support rising toward $1.3400, the pair trading near $1.3485 and next resistance possible near the $1.3500 round number then $1.3535 and $1.3600. RSI overbought suggests potential for a pause but so far it continues to confirm the uptrend.
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