The US Dollar has come under pressure today, taking out its recent low. This has sparked big rallies in other currencies, particularly EUR and SGD. GBP and CAD are also climbing. Meanwhile gold and JPY are showing signs of bottoming out. On the index side, recent rallies in Japan 225 and Hong Kong 50 may be running out of gas.
Asia Pacific Indices
Australia 200 is sending mixed signals. The index remains in an uptrend trading near 5,860 above 5,800 and its 50-day average. RSI falling under 50, however, signals momentum turning downward. Next resistance possible near 5,920 with next potential support on a downturn near 5,730.
Japan 225 continues to struggle with 20,000 round number resistance and has dropped back form 19.910 toward 19.820 with next support possible near 19,695 its recent breakout point. RSI back under 70 signals a downward correction starting.
Hong Kong 50’s latest advance appears to be stalling. Resistance has emerged near 25,455 with the index dropping back toward 25,395. Next support looks possible near 25,255 a previous resistance level. RSI overbought suggests potential for a trading correction.
North American and European Indices
US 30 is still bouncing around 21,000 trading between 20,970 and 21,020. It continues to attract support above its 50-day average near 20,770 while still facing resistance near 21,130.
US SPX 500 is still sitting on 2,400 as it trends sideways between 2,378 and 2,406. A breakout would signal the start of a new upleg with measured resistance possible near 2,434. Next support at the 50-day average near 2,366.
US NDAQ 100 is peeking above 5,700 to a new high, trading up toward 5,716. Next measured and round number resistance possible near 5,750, with initial support near 5,660. RSI remains really overbought but so far the uptrend shows no signs of breaking either.
UK 100 is breaking out today, clearing 7,450 the head of a failed head and shoulders top, and breaking through the 7,500 round number. Either of these levels may become new higher support. Next measured resistance possible in the 7,600 to 7,640 area. Rising RSI confirms increasing upward momentum.
Germany 30 continues to steadily climb within a 12,650 to 12,900 trading range, recently trading between 12,780 and 12,840. RSI overbought but confirming intact upward momentum for now.
Gold continues to climb up off a higher low near $1,220 with support rising toward $1,230 and the pair advancing on $1,238. Next potential resistance appears near $1,248 where the 50-day average appears poised to stage a golden cross of the 200-day average. RSI rising toward 50 indicates downward pressure easing.
WTI crude oil has dropped back from near $49.40 where it stalled out close to its moving averages, back toward the $48.40 to $48.70 area. It remains in an upswing well above its recent $47.70 breakout point. RSI testing 50 where a breakout would signal an upturn but a failure would confirm an ongoing downtrend.
US Dollar Index is breaking down today, taking out 98.50 and then 98.00 to signal the start of a new downleg. The index has traded down toward with next potential measured support near the 97.50 level. RSI falling away from 50 confirms increasing downward momentum.
EURUSD is breaking out today, blasting through $1.1000 and advancing on $1.1100 to complete a consolidation phase and signal the start of a new upleg. Next potential resistance near $1.1145 then a measured $1.1160. Rising RSI confirms upward momentum increasing.
GBPUSD is still hanging around $1.2900 as it digests recent gains between $1.2825 and $1.3000, recently rallying from $1.2880 toward $1.2925. RSI drifting toward 50 indicates momentum downshifting from upward to neutral but a Golden Cross of the 50-day average over the 200 confirms underlying uptrend remains intact.
NZDUSD is trying to rebound but it really needs to regain $0.6900 then $0.6940 to call off its current falling channel distribution trend. RSI suggests downward pressure easing but it needs to regain 50 to signal an upturn. Downside support in place near $0.6850 then $0.6815.
AUDUSD continues to base build trading between $0.7330 and $0.7450 two Fibonacci levels. RSI gaining on 50 indicates downward pressure fading but it needs to clear 50 to signal an upturn. Next resistance possible near $0.7465 then $0.7500 if successful.
USDSGD’s big plunge continues with the pair breaking down below $1.4000 and falling toward a test of $1.3948 a Fibonacci level. Next potential support near $1.3950 a recent low. RSI back under 50 and falling confirms a downturn underway.
USDJPY continues to roll over, sliding from near 114.00 down through 113.35 a Fibonacci level an on toward 113.00. Lower highs in the pair and a head and shoulders top in the RSI indicate the recent upswing has peaked and a pause or correction starting. Next support possible near 112.15.
GBPJPY continues to drop back form 147.95 resistance, sliding toward the bottom of a 145.75 to 147.00 range. RSI falling back under 70 confirms a trading correction underway with next potential support near 145.00.
EURJPY is extremely overbought and vulnerable to a correction but for now it continues to climb, continuing its rally up off of 124.00 by clearing 125.00 and advancing on 125.75. Initial support rises toward 124.90. Next measured resistance possible near 126.10.
USDCAD continues to roll over with its $1.3665 breakdown point emerging as lower resistance and the pair dropping down through $1 3600 and on toward $1.3580. Next potential support appears near $1.3570 then $1.3500. RSI falling toward 50 indicates recent uptrend weakening and a downturn pending.
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