Even through the quieter holiday period, significant technical signs are emerging. Head and shoulders RSI patterns in EURUSD and USDSGD suggest a significant top forming in USD. Some of the pressure appears to be coming off JPY which has started to make inroads against USD, EUR and GBP. The stronger Yen has knocked back Japan 225 while US 30 continues to struggle with the 20,000 round number. WTI has started to backtrack, dragging CAD down the drain along with it.
Asia Pacific Indices
Australia 200 remains under accumulation with its 5,600 breakout point becoming new support up from 5,555. Rising RSI confirms upward momentum increasing with next potential resistance near 5,630 then a measured 5,700-5,750.
Japan 225 is having an inside day as its uptrend starts to lose momentum. Resistance has emerged near 19,660 with more possible near 20,000 and the index has dropped back under 19,500 toward 19,435. Next downside support near 19,365 then 19,165. RSI dropping toward 70 where a breakdown would signal the start of a downward correction.
Hong Kong 50 has levelled off near its 200-day average following a pullback, but the range is quite wide between 21,660 and 21,920. The index appears to be under distribution, recently slipping back under 21,800 toward 21,750.
North American and European Indices
US 30 is still testing 20,000 and still struggling to get through, trading between 19,955 and 19,985. Higher lows indicate accumulation but a negative RSI divergence indicates upward momentum slowing. Next resistance near a measured 20,240 with next support near 19,870 then 19,740.
US SPX 500 is struggling with resistance near 2,280 but continues to attract strong underlying support through the current consolidation phase trading above 2,240. Next measured resistance on a breakout possible near 2,320 with next support near 2,220 a Fibonacci test.
US NDAQ 100 continues to consolidate recent gains above its 4,900 breakout point but remains stuck below resistance near 4,965 with its next test at the 5,000 round number. RSI indicates underlying accumulation intact.
UK 100 remains under accumulation trading above 7,000 and advancing into the 7,030 to 7,060 area with next resistance possible near 7,070 then 7,110. Rising RSI confirms upward momentum increasing.
Germany 30 is holding just above 11,445 where former channel resistance has become support confirming a breakout. Initial resistance has emerged near 11,480 with more possible near 11,500. Overbought RSI suggests potential for a pause or correction.
Gold appears to be trying to form a base in the $1,120 to $1,140 range, bouncing up off a higher low near $1,126 toward $1,134 with initial resistance possible near $1,138 then $1,142. RSI remains deeply oversold.
Crude Oil WTI ran into resistance near $52.80 with more near $53.20 and has started to drop back, taking out $52.00 and falling toward $51.40 and a retest of a recent breakout point. It remains in an uptrend above the $50.00 round number.
US Dollar Index ran in to resistance near 103.65 and has started to pull back a bit slipping under 103.00 toward 102.90 with next potential support near 102.50 then 102.00. Initial resistance drops toward 103.30.
EURUSD has bounced back up above $1.0400 with a double bottom in place near $1.0360 and a head and shoulders base forming in the RSI. Initial rebound resistance possible near $1.0475 then the $1.0500 round number.
GBPUSD has confirmed channel support near $1.2300 with initial rebound resistance possible near $1.2410 near the 50-day average then $1.2500 with next support near $1.2125.
NZDUSD remains stuck below $0.7000 but appears to be attracting support in the $0.6880 to $0.6960 range recently trading near $0.6910.
AUDUSD is building on a hammer candle trading in the $0.7220 to $0.7280 as it attempts to base build. A positive RSI divergence suggests downward pressure may have reached its limits and could ease from here. Initial rebound resistance near $0.7300 a recent breakdown point.
USDSGD appears to be rolling over with the pair sliding toward $1.4440 from $1.4500. A break of $1.4400 would signal the start of a new downswing with next support near $1.4350 then $1.4200. A head and shoulders forming in the RSI indicates a major top may be forming and upward momentum may have peaked already.
USDJPY appears to have peaked near 118.60 with the pair backsliding toward 117.60 from 118.20. A negative RSI divergence indicates upward momentum slowing and a break under 70 would signal the start of a correction with next potential support near 117.15 then 116.35 and 115.40.
GBPJPY continues to show signs of breaking down with the 146.20 Fibonacci level becoming lower resistance and the pair drifting toward 145.00 with next potential support at the 200-day average near 142.80. RSI under 70 and falling indicates a correction underway as upward momentum weakens.
EURJPY has bounced up from 122.100 toward 122.80 but a top still appears to be forming with RSI starting to trend lower. Resistance drops toward 123.00 with next potential support near 121.65 then 121.00 a 23% retracement of the recent uptrend.
USDCAD held its 50-day average near $1.3360 and has started to climb again, clearing $1.3400 and advancing on $1.3430 with next potential resistance near $1.3500.
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