Chart Signals: USD rally crushes gold and Sterling, momentum shifts downward

USD took off Friday mowing down other currencies but particularly impacting GBP and EUR which also broke down relative to JPY. Generally speaking momentum appears to be pointing downward with the RSI indicators for a number of contracts breaking below or falling away from 50.

Asia Pacific indices

Australia 200 continues its trading bounce an easing of deeply oversold conditions advancing on 5,300 where it has encountered some resistance with more possible near 5,335 a Fibonacci test and support rising toward 5,280 from 5,200. 

Hong Kong 50 is trading near 23,405 a Fibonacci level, having bounced up off 23,000 then 23,360 up toward 23,560 with next potential resistance near 23,665. RSI back above 50 confirms momentum picking up a bit.  

Japan 225 remains under pressure with resistance falling from near 16,500 toward 16,390 and the index testing 16,325 support with more possible near 16,000. RSI under 50 and falling indicates downward momentum increasing.  


North American and European Indices

US 30 is coming off an inside day where it traded below Thursday’s 18,255 high having dropped into the 18,080 to 18,160 area but continues to attract support above the 18,000 round number. RSI suggests downward pressure levelling off. 

US NDAQ 100 has levelled off near 4,800 short of 4,840 resistance. A lower high in the RSI suggests this trading bounce may have run its course already. Initial support in place at the 50-day average near 4,740. 

US SPX 500 is sending mixed signals drifting back into the 2,132 to 2,142 area while lower highs continue to form a descending triangle above 2,115 with next support possible near 2,100 where a round number and Fibonacci test converge. RSI rising toward 50 suggests downward mo slowing. 

UK 100 remains stuck below its 50-day average near 6,760 for now but has bounced up off 6,690 toward 6,640 while RSI climbing toward 50 indicates downward pressure easing. 

Germany 30 broke down in a big way Friday, taking out its 50-day average near 10,400 to complete a double top and signal a downturn. The Index has fallen toward the 10,250 to 10,300 area with next potential support near 10,200 then 10,090. RSI indicates downward momentum accelerating.  


Commodities 

Gold remains in a downswing, trading in the $1,307 to $1,312 area below its 50-day average near $1,330 and initial resistance near $1,320. Support remains in place at a Fibonacci cluster just below $1,300. Falling RSI indicates downward pressure increasing. 

Crude Oil WTI continues to retreat after faltering short of $45.00 earlier in the week, sliding from near $43.50 toward the $42.80 to $43.20 area with next potential support near $42.70 the bottom of the current channel then $40.80. RSI bouncing between 40 and 60 indicates directionless trading swings. 


FX 

US Dollar Index broke out Friday clearing its 50-day average near 95.75 then the 96.00 level to complete an ascending triangle and signalling the start of a new upswing confirmed by RSI retaking the 50 level. Next potential resistance near 96.25 then 96.50. 

EURUSD slumped back under $1.1200 toward a retest of $1.1150 near where tis 50 and 200-day average cluster. RSI diving under 50 signals a downturn in momentum underway with next potential support near $1.1115 then $1.1050. 

GBPUSD broke down Friday, taking out its 50-day average near $1.3170 and diving toward a test of the $1.3000 big round number. RSI diving under 50 confirms downward pressure increasing with next potential support near $1.2890. 

NZDUSD slipped back under $0.7300 once again sliding toward $0.7255 with support possible at its 50-day average near $0.7220 then a Fibonacci level near $0.7195. RSI bouncing around 50 suggests momentum neutral to slightly lower. 

AUDUSD’s attempt to break out over $0.7500 failed with the pair slumping back toward $0.7480 from $0.7530, and next support possible near $0.7440 then $0.7390 and the 200-day average. RSI under 50 confirms downtrend in  

USDSGD has bounced back up within the $1.3600 to $1.3700 where it has been consolidating recent gains. RSI above 50 and rising indicates upward momentum increasing with next potential resistance at its 200-day average near $1.3635 then near $1.3850

USDJPY remains in a long-term downtrend sliding away from falling channel resistance and its 50-day average near 103.00 toward 102.30 with next potential support near 101.00 then 100.00. RSI failing to retake 50 confirms downward momentum remains intact. 

GBPJPY broke down Friday, taking out its 50-day average near 135.30 then the 135.00 round number on its way toward 133.00 with next potential support near 132.25. RSI falling away from 50 confirms downtrend accelerating. 

EURJPY is dropping within a 113.30 to 116.30 trading range falling below a Fibonacci level and the 50-day average near 114.90 toward 114.10 with next support possible near 113.00. RSI sliding under 50 signals momentum turning downward again. 

CADJPY remains in a downswing trading between 77.00 and 77.70 with next potential support near 76.10. 

USDCAD remains under accumulation bouncing up from near $1.3150 toward the $1.3200 to $1.3240 area with resistance in place at its 200-day average near $1.3250. RSI confirms upward momentum increasing.