Chart Signals: USD and WTI roll over, indices under distribution, gold and EUR lead currency rebound

Friday saw a lot of big breakout and confirmation of reversal moves following that surprise announcement that the FBI is reopening its investigation of Hillary Clinton’s emails. This news sparked a selloff in stocks and a spike in gold, classic defensive action. In addition, the seemingly relentless rally in USD finally relented enabling EUR, AUD, NZD, SGD and others to rebound. JPY is coming off a mixed Friday that saw it bounce against USD but fall relative to EUR’s bigger rebound.

Friday saw a lot of big breakout and confirmation of reversal moves following that surprise announcement that the FBI is reopening its investigation of Hillary Clinton’s emails. This news sparked a selloff in stocks and a spike in gold, classic defensive action. In addition, the seemingly relentless rally in USD finally relented enabling EUR, AUD, NZD, SGD and others to rebound. JPY is coming off a mixed Friday that saw it bounce against USD but fall relative to EUR’s bigger rebound. 

Asia Pacific indices

Australia 200’s downtrend continues to accelerate with the index diving down toward the 5,260 to 5,300 and a test of its 200-day average in a quick slide after 5,400 gave way. RSI confirms selloff accelerating with next potential support near 5,200.  

Hong Kong 50 broke down Friday falling from near 23,405 a Fibonacci level sown through 23,000 then retesting it as new resistance. Next support appears near 22,840 then 22,650. RSI confirms downward pressure increasing. 

Japan 225 is bouncing around 17,430 a Fibonacci level trading between 17,350 and 17,480. RSI nearing overbought territory so a correction possible with initial support near 17,180 then 17,000. 


North American and European Indices

US 30 remains under pressure steadily retreating below its 50-day average toward 18,000 forming a bearish descending triangle. RSI remaining stuck below 50 confirms distribution. Index fell Friday from near 18,270 toward 18,110 before stabilizing near 18,190. 

US NDAQ 100 continues to fall away from a bull trap peak early last week, breaking down through its 50-day average near 4,815 and 50 on the RSI to signal a downturn. Next potential support appears near 4,790 then 4,740. 

US SPX 500 remains under distribution shown by a trend of lower highs below the 50-day average forming a descending triangle between 2,200 and 2,100 while RSI under 50 and falling indicates downward pressure increasing. Index recently dropped back form near 2,142 toward 2,119 before settling near 2,310. 

UK 100 keeps backsliding, failing to retake the 7.000 round number and dropping to retest 6,925 breakout point support. Should that fail, net potential support may appear at the 50-day average near 6,900 or the 6,800 level. RSI slipping back under 50 suggests momentum turning back downward. 

Germany 30 continues to slide within a 10,500 to 10,800 trading range following completion of a triple top. The index has been trading in the 10,590 to 10,750 range more recently between 10,630 and 10,710. RSI suggests a downswing underway within a sideways trend. 


Commodities 

Gold’s upturn accelerated Friday with the yellow metal spiking up from near $1,262 to test $1,282 Fibonacci resistance which held before dropping back toward $1,274 which has emerged as higher support. RSI indicates the recent selloff unwinding and confirmation of an upturn pending.   

Crude Oil WTI is starting to really roll over with the price taking out $49.00 and sliding toward $48.40 with next potential support at the 50-day average near $46.80. RSI breaking down under 50 confirms momentum turning downward. 

FX 

US Dollar Index is starting to break down with a big red candle and RSI falling back under 70 from overbought signalling the start of a downward correction. Having dropped from near 99.00 toward 98.30 already, next potential support appears near 97.60 then 96.90. 

EURUSD is starting to turn back upward, driving up off $1.0900 toward $1.0980, while RSI gaining on 50 indicates recent selloff ending and an upturn pending. A retaking of the $1.1000 round number would confirm the start of a new advance. 

GBPUSD bounced up off $1.2120 toward $1.2200 as it continues to stabilize between there and $1.2280. RSI indicates downward pressure starting to ease a bit. Next upside resistance possible near $1.2375. 


NZDUSD pears to be establishing some support near $0.7100 and has bounced back toward $0.7160 with initial resistance near $0.7195 a Fibonacci level. It really needs to retake $0.7265 on the pair and 50 on the RSI to call off a head and shoulders top. 

AUDUSD confirmed its underlying uptrend remains intact rallying up off of $0.7550 support back toward $0.7600. An ascending triangle continues to form below $0.7725 with initial resistance near $0.7630. RSI bouncing between 40 and 60 indicates a sideways trend. 

USDSGD continues to struggle with $1.3960 resistance and looks like its rolling over with RSI back under 70 from overbought signalling a correction starting. The pair has retreated toward $1.3910 with next potential support near $1.3880 then $1.3845.

USDJPY peeked up above 105.00 briefly, trading up toward 105.50 before plunging back down toward 104.50 in what looks like a bull trap peak or buying climax. Resistance drops toward 104.90 with next support possible near 104.00 in a downturn. 

GBPJPY is nearing the top of its 124.70 to 128.70 base building range where a breakout would complete an ascending triangle. Support rises toward 127.50 with next potential resistance near the 130.00 round number.

EURJPY continues to climb, clearing 115.00 and a 23% Fibonacci retracement level to move back into the upper half of its 114.00 to 116.00 trading range. RSI back above 50 confirms momentum turning upward. 

USDCAD touched a new high on trend near $1.3440 with next resistance possible near the $1.3500 round number. It slumped back toward $1.3350 and with RSI levelling off near 60, its current upswing may be moderating.  

USDMXN turned sharply upward Friday, building on a breakout over 18.70 and driving toward 19.00 with next potential resistance near 19.20 then 19.38. RSI retaking 50 confirms a significant upturn in momentum underway.  

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