Chart Signals: USD and crude oil under pressure, gold rallies, JPY prepares for Bank of Japan

USD has turned lower following the FOMC meeting enabling other currencies like gold, EUR and GBP to rally. A downturn in the oil price has been dragging on CAD. JPY pairs have been bouncing back a bit with the potential for action following the Bank of Japan meeting.

USD has turned lower following the FOMC meeting enabling other currencies like gold, EUR and GBP to rally. A downturn in the oil price has been dragging on CAD. JPY pairs have been bouncing back a bit with the potential for action following the Bank of Japan meeting. 

Asia Pacific Indices

Australia 200 has stabilized in the 5,145 to 5,170 range with next resistance near 5,195 a Fibonacci level then the 5,200 round number and 5.235. Oversold RSI suggests recent selloff may be overdone and the potential for a trading bounce increasing. 

Japan 225 has bounced back up toward 16,000 with support moving up toward 15,900 from 15,750. RSU suggests downward pressure levelling off. Initial resistance looms near 16,060 a Fibonacci level where a breakout would confirm an upturn.

Hong Kong 50 is on the rebound having found support near 20,135 and rallying up into the 20,480 to 20,550 area. RSI bouncing off 40 suggests the recent downdraft may be winding down. Next potential resistance near 20.705 a Fibonacci level.

North American and European Indices

US 30 found early support near 17,595, bounced back toward the 17,700 to 17,730 area but slipped late back toward 17,630. It still needs to retake its 50-day average near 17,780 to call off its recent breakdown. RSI bouncing between 40 and 60 indicative of a sideways trend.

US NDAQ 100 has stabilized above 4,400 with more support possible at a Fibonacci level near 4,345. RSI has levelled off near 40 indicting sideways momentum. Initial resistance on a bounce possible near 4,440 then 4,500.

US SPX 500 found support near and has been bouncing around its 50-day average near 2,078 with initial resistance near 2,088. RSI levelling off just below 50 suggests recent downdraft may be ending.

UK 100 is coming off an inside consolidation day having found support near 5,900. Although it has rebounded toward 5,975, it really needs to retake 6,000 to call off yesterday’s breakdown. RSI near oversold suggests this could be a trading bounce to digest recent losses.

Germany 30 is bouncing back coming out of a successful retest of 9,500 and a hammer candle which suggests bears may have reached their limits for now. The index has rallied into the 9,570 to 9,630 area with next resistance possible near 9,720.

Commodities

Gold blasted through $1,295 resistance on the Fed news, driving up toward a resistance range between the $1,300 round number and $1.305 a Fibonacci level also the top of a big trading channel. RSI approaching overbought but indicates upward momentum increasing for now. 

Crude Oil WTI broke down below $48.00 a channel bottom that may become new resistance, falling toward $47.20 with next potential support near $45.90 then the 50-day average near $45.35. RSI falling below 50 signals momentum turning downward and a correction deepening.

 

FX

 

US Dollar Index ran into resistance at the 95.00 round number and 50 on the RSI indicting upward momentum faltering. Initial support near 94.45 then 94.00.

EURUSD found support near $1.1200 then bounced back up into the $1.1240 to $1.1290 area. RSI stabilizing near 50 suggests broader sideways trend remains intact. Next resistance possible at the 50-day average near $1.1310

GBPUSD has established support near $1.4075 with more possible near the $1.4000 round number as channel support holds. The pair has rebounded into the $1.4180 to $1.4210 area with next rebound resistance possible near $1.4255.

NZDUSD has a bullish reversal underway having traded down toward $0.6960 then popping back up through $0.7000 and on into the $0.7030 to $0.7070 area. RSI dropping away from 70 suggests however that the recent correction may not be over with a pause below $0.7100 still possible. .

AUDUSD is on the rebound popping up from near $0.7335 back up toward its 50-day average near $0.7450 with support rising toward $0.7400 and next resistance at the $0.7500 round number. 

USDSGD successfully retested $1.3500 support setting a higher low near $1.3490 then rebounding toward $1.3550 with next resistance at the 50-day average near $1.3610.

USDJPY has bounced up toward 106.10 following a successful retest of 105.30 support that may have completed a double bottom. A hammer candle also suggests the tide may be turning while RSI suggests downward momentum starting to slow. Next upside resistance near 107.00. 

GBPJPY is trading back above 150.00 having established support near 149.25. RSI near oversold suggests potential for a trading bounce ti it needs to retake the 151.45 recent breakdown point to confirm an upturn.

EURJPY has bounced back above 119.00 and on toward 119.50 but it really needs to retake the 120.00 round number to call off its recent breakdown. RSI near oversold suggests a trading bounce possible.

CADJPY is trying to stabilize near 82.45 a Fibonacci level but with RSI showing downward pressure increasing, a retest of 81.30 or 80.00 support can’t be ruled out. Next resistance on a bounce possible near 82.95.