Originally published by CMC Markets
The Australian and New Zealand dollars have been picking up with the Aussie dollar regaining $0.8000 and the kiwi dollar regaining $0.7300. On the other hand, WTI has been reeling from another failed attempt to retake $50.00. Markets otherwise have been consolidating the moves of the last week or so.
Asia Pacific Indices
The S&P/ASX 200 is holding steady near 5,725 just below its 50 and 200-day moving averages. The index continues to trend sideways between 5,650 and 5,800, confirmed by RSI sitting on 50.
The Nikkei 225 continues to climb, with support rising from 20,090 toward 20,210 and the index advancing on 20,280. The index is approaching a big resistance test at its June peak near 20,345 with initial resistance near 20,290. Rising RSI indicates upward momentum still increasing.
The Hang Seng ran into resistance near 28,190 once again and has dropped back into the 28,020 to 28,080 area. The index remains in an uptrend above 28,000 but if that fails next downside support doesn’t appear until near 27,690.
North American and European Indices
The Nasdaq 100 is still struggling with 6,000 round number resistance, trading between 5,970 and 6,010. RSI steady near 55 indicates a pause within an ongoing uptrend above 5,900 support. Next measured resistance possible near 6,100.
The FTSE 100 found some support near 7,200 and has rebounded toward 7,280. So far this appears to be a normal trading bounce contained by 7,300 the recent breakdown point where a channel bottom and the 200-day average failed to hold support and may become resistance.
The DAX has paused between 12,480 and 12,600, recently trading near 12,555. Higher lows indicate that underlying continues through what looks like a normal consolidation phase following a big breakout rally. Next upside test possible near 12,670 on trend.
Commodities
Gold appears to be stabilizing between $1,300 Fibonacci and round number support, and $1,310 initial resistance. RSI stabilizing near 50 suggests the recent correction may be ending with overbought conditions easing. Next resistance near $1,322 a Fibonacci level.
WTI crude oil tried to retake $50.00 but failed to hold above that big round number, peaking near $50.40 then slumping back down toward $49.30 and 200-day moving average support. Next downside test in a pullback appears near $48.60.
FX
The US Dollar Index is still base building, with higher lows starting at a bullish hammer candle earlier this month indicating renewed accumulation. Support has moved up toward 91.50 form 91.00 with the index near 91.60 and next resistance possible near 92.00 then 92.45.
EUR/USD continues to encounter $1.2000 round number resistance. The pair continues to trend sideways between $1.1864 and $1.2100 with RSI holding 50 indicating its underlying uptrend remains intact through this consolidation phase. Initial support in place near $1.1960.
GBP/USD continues to digest recent gains and work off an overbought RSI around $1.3500 trading between $1.3470 and $1.3550. Next support in a deeper correction possible near $1.3380 with next resistance on a rally possible near $1.3610.
NZD/USD increasingly looks like it has turned the corner with support rising toward $0.7300 as a bullish ascending triangle forms below $0.7335. RSI has regained 50 signalling momentum turning upward. Next potential resistance near $0.7385 a Fibonacci level.
AUD/USD remains in an uptrend rallying back up above $0.8000 following a successful test of its 50-day average near $0.7935. RSI successfully testing 50 support confirms continuing accumulation. Next resistance possible near $0.8035 then $0.8065.
USD/SGD remains under steady distribution with the $1.3500 round number becoming resistance following a breakdown and the pair trading near $1.3460. Next potential support appears near $1.3420 then $1.3350 with initial resistance on an upturn near $1.3530.
USD/JPY could be peaking with a doji candle forming to indicate a standoff between bulls and bears. The pair has slumped back toward 111.50 after running into Fibonacci resistance near 111.95. Next support possible near 111.00. RSI suggests upward momentum levelling off.
GBP/JPY continues to consolidate near 150.00. Trading in a narrow 150.00 to 151.05 range following a spike up from 145.00 could be the centre consolidation phase of a flag pattern forming. It may need more time to digest recent gains and work off an overbought RSI.
EUR/JPY remains under accumulation, breaking through 133.00 to reach a new high on trend. The pair rallied up toward 134.20 before backtracking toward 133.70. Rising RSI indicates increasing upward momentum with next resistance possible near the 135.00 round number.
USD/CAD has paused between $1.2250 and $1.2330 consolidating Monday’s breakout over $1.2200 that completed a rounded bottom base. RSI climbing up out of a positive divergence and toward 50 indicates downward pressure easing and an upturn pending. Next potential resistance near $1.2425.