Later stage markets like AUD and NZD along with the technology weighted US NDAQ index continued to climb Friday along. Markets which had posted strong gains earlier in the week like gold and JPY paused Friday while indices around the world continued to show signs of topping out. Markets are moving into fairly wide sideways ranges which could create swing trading opportunities. Note that US markets are closed Monday January 16 for Martin Luther King Day.
Asia Pacific indices
Australia 200 continues to form a rounded top, falling away from 5,800 with resistance sliding toward 5,750 and the index dropping toward 5,710 with next potential support near 5,660. RSI braking under 70 from overbought territory confirms a downward correction starting.
Hong Kong 50 is stuck currently, trading between its recent breakout point near 22,780 and the 23,000 round number. Rising RSI indicates underlying accumulation intact. Next resistance possible near 23,110 then a measured 23,220 with next support at the 50-day average near 22,435.
Japan 225 remains in a sideways channel following a successful test of 19,000 round number support with the index bouncing back into the 19,220 to 19,380 area. RSI holding 50 indicates underlying uptrend intact for now but a downturn still possible, particularly if JPY continues to rebound. Next resistance near 19,475 with next support possible near 18,675 and the 50-day average.
North American and European Indices
US 30 is still trending sideways trading near 19,900 within a 19,700 to 20,000 trading channel. Initial support and resistance near 19,860 and 19,940. RSI drifting downward indicates exhausted uptrend momentum weakening.
US SPX 500 is still struggling with 2,282 resistance where it appears to have completed a double top. The index has drifted back toward 2,275 while RSI falling toward 50 signals upward momentum fading and a downturn pending. Next support possible near 2,272 then 2,252.
US NDAQ 100 broke out to a new high Friday clearing 5,050 and trading up toward 5,066 with support rising toward 5,056 Next measured upside test near 5,100 with next downside support near 4,960 a recent breakout point.
UK 100 remains under accumulation, still trading above 7,300 near 7,330 with next measured resistance near the 7,500 round number. RSI is really overbought indicating potential for a correction but so far it continues to confirm the underlying uptrend. Initial support in a correction possible near 7,255.
Germany 30 continues to bounce around in a range between 11,445 and 11,700. Although the index has rallied back up from near 11,530 up toward 11,600 with next resistance near 11,650, RSI rollover still indicates upward momentum weakening so upside could be limited.
Gold continues to encounter resistance near the $1,200 round number and a Fibonacci cluster between there and $1,210. Support has moved up into the $1,193 to $1,197 area from $1,188 as rising RSI indicates the metal price remains under accumulation through this pause.
Crude Oil WTI is still bouncing around in a $50.00 to $54.00 trading range with RSI confirming a neutral phase while it consolidates gains within a wider uptrend. That being said, oil appears to be in a downdraft falling from near $52.90 toward the $52.10 to $52.40 area with next support in place near $51.60.
US Dollar Index continues to drift downward with resistance falling toward 101.50 from 102.00 while RSI under 50 and falling confirms increasing distribution. Next potential support near 100.60 then the 100.00 round number.
EURUSD remains under accumulation while consolidating recent gains in the $1.0580 to $1.0660 area between two Fibonacci levels and above its 50-day average. Rising RSI indicates growing upward momentum with next resistance possible near $1.0720 on trend.
GBPUSD is bouncing around between $1.2130 and $1.2210 trying to decide what to do next after a successful retest of $1.2000 completed a big double bottom. RSI holding 40 suggests an emerging uptrend with next resistance possible near $1.2325 then $1.2410 and the 50-day average.
NZDUSD continues its upswing, building on its breakout over $0.7100 by rallying up off its 200-day average near $0.7070 and advancing on $0.7130 with next potential resistance near $0.7145 then $0.7235. RSI above 50 and rising indicates upward momentum accelerating.
AUDUSD is sitting on $0.7500 a round number and its 200-day average digesting a rally up from $0.7200 over the last several days. Next resistance possible near $0.7515 then $0.7565 with initial support rising toward $0.7480 from $0.7450. RSI confirms upward momentum still accelerating.
USDSGD is on the rebound, bouncing up off $1.4200 into the $1.4255 to $1.4330 range above Fibonacci support and near its 50-day average. RSI between 40 and 50 suggests it could be entering a rest phase to consolidate recent breakdowns within an emerging downtrend.
USDJPY has settled into a 114.00 to 115.50 range between two Fibonacci levels, consolidating recent losses just above its 50-day average. RSI under 50 and falling indicates downward momentum accelerating with next potential support near 113.60 then 113.10. Recent trading in the 114.20 to 114.80 zone.
GBPJPY has paused around the 140.00 round number trading between 139.40 and 140.60. RSI suggests this could be a pause in a bigger downtrend with next potential support near 138.10 a Fibonacci level.
EURJPY held 121.00 channel and Fibonacci support and has bounced up toward the 121.80 to 122.40 area. It remains in a sideways channel below 124.00 but RSI slipping under 50 suggests momentum starting to turn downward.
USDCAD appears to be taking a break in the $1.3110 to $1.3160 area just above its 200-day average well below $1.3300 resistance and above $1.3015 support. Falling RSI indicates broader downtrend remains intact.
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.