NZD has staged a new leg downward this afternoon after the RBNZ statement actively tried to talk the Kiwi dollar down. Political uncertainly in the US and Europe, meanwhile, have been dragging on EUR and indices, with the single currency down against both USD and JPY. Meanwhile GBP remains well supported above $1.2500 for Cable and 140.00 against JPY. Gold continues to climb while crude oil has been choppy.
Asia Pacific Indices
Australia 200 continues attract support above 5,600 bouncing up into the 5,630 to 5,660 area. RSI holding 40 encouraging but it needs to retake 50 to signal an upturn. Next potential resistance near 5,670 then 5,725 with next support possible near 5,575.
Japan 225 is taking a run at 19,000 having rallied up from 18,900 toward 18,880. With RSI bouncing around 50 a sideways range appears to be emerging between 18,750 and the 50-day average near 19,190.
Hong Kong 50 continues to consolidate recent gains between 23,000 and 23,550 recently retrenching back from the top of the range back toward the 23,410 to 23,470 area.
North American and European Indices
US 30 has dropped back into the 20,030 to 20,060 area after completing a double top retest of 20,140 resistance. The index holding 20,000 and RSI holding 50 suggest this remains a pause within an uptrend but breaks of those levels would signal a significant trend change.
US SPX 500 continues to struggle with 2,300-2,305 resistance having completed a double top. The index has dropped back toward 2,292 with next potential support near 2,282 and 2,252. A head and shoulders top in the RSI indicates upward momentum has topped out.
US NDAQ 100 has encountered some resistance near 5,200 but remains in an uptrend holding above its 5,175 breakout point. Next measured resistance near 5,250 with next downside support near 5,100. An overbought RSI, negative divergence and head and shoulders top in the momentum indicator suggest upward momentum may be peaking.
UK 100 found support at a higher low near 7,150 and has quickly bounced back to retest 7,200 where a recent breakout attempt ran into resistance. RSI back above 50 indicates accumulation resuming with next potential resistance near 7,225 then 7,255. .
Germany 30 has stabilized between 11,540 and 11,590 holding above 11,445 support but still trending downward. RSI unable to retake 50 confirms a downturn in momentum.
Gold is breaking out again today, rallying up off $1,230 a Fibonacci level toward $1,240 with next potential resistance in the $1,250 to $1.255 area where a Fibonacci cluster and round number converge. A negative RSI divergence, however, suggests it may need to pause for a rest sometime. Initial support rises toward $1,236
Crude Oil WTI has shifted into a sideways trend. An ascending triangle failed but support came in near $51.00 and the price has bounced back up into the $51.90 to $52.30 zone near its 50-day average with next resistance possible near $53.00 and next support possible near $50.40. RSI bouncing around 50 confirms sideways trend.
US Dollar Index is still holding above 100.00 and appears to be trying to break out of a falling channel but there doesn’t appear to be much enthusiasm with the RSI still below 50. Recently trading near 100.30 next resistance appears near 100.35 then 100.75.
EURUSD continues to retreat with RSI falling under 50 signalling a downturn in momentum. Resistance has dropped toward $1.0700 from $1.0755 and the pair has retreated toward $1.0680 with next potential support near $1.0640 then $1.0600 and the 50-day average.
GBPUSD is having an inside day, trading just above $1.2500 as it digests Tuesday’s big swings between $1.2355 and $1.2545. Support remains in place at the 50-day average near $1.2420 and 50 on the RSI indicating continued underlying interest.
NZDUSD is dropping for a second straight day. It had paused near $0.7300 following an initial slide back from $0.7370 resistance, and has a new leg downward underway falling toward $0.7260 following the RBNZ meeting. Both the pair and the RSI appear to be rolling over a bit so a correction may be starting with next potential support near $0.7240 a previous resistance point, then the $0.7090 to $0.7110 area where the 50 and 200-day averages converge. .
AUDUSD remains in an uptrend but has levelled off between $0.7600 and $0.7700 just below $0.7725 resistance, pausing to work off an overbought RSI. Recent trading between $0.7530 and $0.7570.
USDSGD remains under distribution trading between $1.4085 and $1.4200 with RSI holding under 50 confirming continued downward momentum. Next downside support possible near $1.4050 then $1.4000 with next resistance possible near $1.4215 then $1.4255.
USDJPY is sitting just below 112.35 a Fibonacci level having dropped into a 111.50 to 113.00 trading range with more support near 111.25. RSI still under 50 and still falling indicates continued downward pressure.
GBPJPY appears to be on the rebound with support moving back up toward the 140.00 round number and 200-day average following a bounce up off of 138.10 Fibonacci support. Next potential resistance near 140.65 then 142.25. RSI needs to retake 50 to confirm the start of a new upswing.
EURJPY remains under distribution retesting 120.00 as resistance to confirm a breakdown and falling toward 119.50 with next potential support near 119.05 a Fibonacci level then 118.65. RSI under 50 and falling confirms downward momentum increasing.
USDCAD continues to encounter resistance at a lower high near $1.3200, while RSI remaining below 50 confirms its broader downtrend remains intact. Initial support appears at the 200-day average near $1.3130 then $1.3075 and $1.3000. The pair has been trading between $1.3140 and $1.3180 recently.
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.