There has been a lot of market action today. Japan 225 and Hong Kong 50 have big round number tests at 20,000 and 25,000 respectively. Meanwhile, defensive havens like gold and JPY pairs are breaking down again. US strength has also put pressure on AUD and SGD today.
Asia Pacific Indices
Australia 200 is breaking down today, taking out an uptrend support line near 5,850 and 50 on the RSI to confirm a double top near 5,960. A break of the 50-day average near 5,820 would confirm a downturn with next potential support near 5,800 then 5,765.
Japan 225 is testing the 20,000 big round number as it rallies for a second day on a break out over 19,695 with support rising toward 19,850. RSI confirms increasing upward momentum but is getting extremely overbought leaving the index vulnerable.
Hong Kong 50 broke out over 24,765 to signal the start of a new upleg and has rallied to challenge the 25,000 big round number. Rising RSI indicates increasing upward momentum. Initial support rises toward 24,900.
North American and European Indices
US 30 is holding steady around 21,000. Support has moved up toward 20,950 from 20,900 with resistance in place near 21,050 then 21,130. RSI indicates a pause underway within an ongoing uptrend.
US SPX 500 is staging a big technical test today at 2 400. It has yet to confirm Monday’s peek up toward 2,407, which it needs to clear to call off an Evening Star candle pattern that appears to be forming. Support possible near 2,393 then 2,382. RSI indicates momentum shifting from upward to sideways.
US NDAQ 100 continues to climb, reaching a new all-time high near 5,690 with its 5,665 breakout point becoming support. RSI remains extremely overbought so a pause remains possible and it wouldn’t take much to spark a correction. Initial support possible near 5,635 then 5,600 with next measured resistance near 5,730 on trend.
UK 100 has called off a head and shoulders top, rallying up off of 7,300 toward 7,335 with next potential resistance near7,360 then 7,400 and 7,445 the former shoulder and head resistance levels. RSI rising up off 50 confirms upward momentum increasing.
Germany 30 remains in an uptrend having found support at a higher low near 12,690 and rallying up toward 12,735 but it has met resistance near 12,780 and remains short of its recent peak near 12,900. RSI remains overbought so a correction still possible.
Gold is breaking down again today, taking out $1,220 a Fibonacci level and falling toward $1,214 with next potential support near $1,200. Falling RSI confirms downward pressure increasing but is approaching oversold territory.
Crude Oil WTI met resistance near $46.60 and was knocked back down toward $45.70 as it continues to bounce around a $45.00 to $47.00 trading range. RSI climbing up off 30 suggests the worst of the recent selloff may be behind it with downward pressure starting to ease.
US Dollar Index is breaking out of a base today, clearing 99.00 and advancing on 99.45 to signal the start of an upswing with next potential resistance near 99.55 then 100.00. The index has started to fill in a recent gap. RSI testing 50 where a breakout would confirm the upturn in momentum.
EURUSD remains under pressure, still falling away from a failed attempt to break through $1.1000. The pair has dropped from $1.0930 toward $1.0875 with next potential support near $1.0825 then 200-day average. Falling RSI signals a deepening correction and a downturn pending.
GBPUSD is sending mixed signals. The pair continues to struggle with $1.3000 round number resistance, sliding back toward $1.2930 from $1.2960 while an RSI rollover indicates slowing upward momentum. Meanwhile, however, it remains in an uptrend of higher lows above $1.2900 with more support in place near $1.2865.
NZDUSD remains under distribution, sliding from a lower high near $0.6925 back under $0.6900 with next potential support near $0.6930.
AUDUSD is breaking down in a big way today, diving down under $0.7390 and on toward $0.7330, both Fibonacci levels with next potential support near $0.7285. Falling RSI confirms increasing downward pressure.
USDSGD is breaking out again today, clearing $1.4085 a Fibonacci level to confirm the start of a new uptrend and advancing on $1.4120 with next potential resistance near $1.4155 then $1.4215. Rallying RSI confirms upward momentum accelerating.
USDJPY is breaking out again today, clearing 113.35 a Fibonacci level and advancing on 114.20 with next potential resistance near 114.60 a Fibonacci test then the 115.00 round number. RSI confirms increasing upward momentum but is starting to get overbought.
GBPJPY is extremely overbought and vulnerable to a correction but keeps driving relentlessly higher. The pair has rallied up from 146.70 toward 148.00 bringing the 148.50 December high and the 150.00 round number into view. A correction, however, could take the pair back toward 145.00 a 23% retracement of the recent rally and a round number.
EURJPY remains under accumulation, retesting 124.60 with next resistance possible near the 125.00 round number. Overbought RSI suggests potential for a pause or a correction but uptrend continues for now. Initial support rises toward 123.65 from 123.00.
USDCAD is still rolling over and falling away from a recent peak near $1.3800. The pair has dropped into the $1.3670 to $1.3710 area while the RSI has slipped back under 70 from overbought territory signalling a correction starting. Next support possible near $1.3635 then $1.3570.
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.