WTI bounced back strongly Tuesday but not enough to call off the Evening Star which formed over the previous three days. Meanwhile, US and European indices continue to consolidate at higher levels with a golden cross of the 50 and 200 day averages now complete. NZD and SGD may attract attention today as they try to build on recent gains, with NZDUSD close to completing an ascending triangle.
Asia Pacific Indices
Australia 200 is starting to pick up within a 5,485 to 5,600 trading range with an RSI upturn confirming renewed interest. Next measured resistance on a breakout appears near 5,715.
Japan 225 is holding steady above 16,500 but it really needs to overcome Fibonacci resistance near 16,675 to signal an upturn with next potential resistance near 16,800. RSI on 50 suggests sideways momentum still dominating.
Hong Kong 50 is sending mixed signals. Index has popped back up above 23,000 toward 23.130 but a head and shoulders top in the RSI suggests upward momentum peaking.
North American and European Indices
US 30 took a run at 16,680 channel resistance but fell short, drifting back toward 16,550. The index continues to trend sideways in a channel between 18,360 and 18,660 consolidating gains made earlier in the year. RSI indicates momentum downshifting from upward to neutral.
US NDAQ 100 has climbed up off 4,800 toward 4,830 as it trades in the upper half of a 4,760 to 4,840 consolidation zone where it’s working off an overbought RSI. Upside resistance possible near a measured 4,920 then the 5,000 round number.
US SPX 500 is nearing the top of the 2,165 to 2,195 area where it has been consolidating lately. A retest of 2,192 intraday resistance held suggesting a short term double top. RSI holding 50 and higher lows for the index indicate underlying uptrend intact through this pause. Next potential resistance near 2,200 then a measured 2,225.
UK 100 has stabilized in the 6,850 to 6,890 zone up from a higher low near 6,815. Initial resistance possible near 6,900 then 6,960.
Germany 30 is back up above 10,500 trading near 10,590 suggesting Monday’s dip down toward 10,360 may have completed a near-term shakeout. A golden cross of the 50 and 200-day averages indicates underlying uptrend intact. Initial resistance near 10,650 then 10,800.
Gold continues to attract support above its 50-day average near $1,330 also a channel bottom, while RSI holding 50 confirms underlying uptrend remains intact. Gold is retesting a broken trend support line as resistance near $1,342 with its next upside test near $1,350.
Crude Oil WTI rallied up from $46.00 toward $47.80 as bulls staged a counterattack but it wasn’t enough to call off the evening star that was completed Monday with the price peaking at a lower high.
US Dollar Index remains in a downtrend below 95.00 with resistance falling toward 94.40. Support appears in place near 94.00 followed by the June low near 93.00.
EURUSD continues to attract support above $1.1300 trading near $1.1340 with channel support in place near $1.1400. RSI near overbought suggests it may need to consolidate in the near term.
GBPUSD continues its recovery rally up off $1.3000 for a second day advancing into the $1.3180 to $1.3210 area with next potential resistance near $1.3315 a 23% retracement of the post-Brexit selloff. RSI testing 50 where a breakout would confirm an upturn in momentum.
NZDUSD is retesting $0.7300 as support which could end in confirmation or rejection of the recent breakout form an ascending triangle with initial resistance near $0.7345. RSI confirms upward momentum increasing. Next support on a failure possible near $0.7265.
AUDUSD attempted to bounce up off of $0.7580 but has run into resistance at a lower high near $0.7650 dropping back toward $0.7620. RSI testing 50 where a break would signal a downturn in momentum.
USDSGD is holding above $1.3500 and its 50-day average with RSI above 50 confirming the start of a new upswing with next potential resistance in the $1.3600 to $1.3640 area,
USDJPY is testing the 100.00 round number once again with next potential support near 99.50 then the June low near 98.80. Sliding RSI suggests downward momentum intact for now. Initial resistance on a bounce possible near 100.35 then 101.00.
GBPJPY continues to advance out of a double bottom trading near 132.20 with next potential resistance near 133.15. A saucer bottom in the RSI indicates downward momentum fading and an upturn pending.
EURJPY appears to be base building near 113.00 up from its June low near 110.00. RSI gaining on 50 indicates an upturn pending. Rebound has been contained by the 50-day average near 115.00 which it needs to clear to signal the start of a new uptrend.
CADJPY continues to drift downward trading near 77.60 to confirm yesterday’s drop back under 78.00. RSI confirms downward pressure increasing again with next potential support near 76.70.
USDCAD’s recent rally appears to have been contained by the $1.3000 round number and 50-day average while RSI remaining below 50 suggests broader downtrend intact. Initial support near $1.2890 then $1.2765.