Originally published by CMC Markets
Asia Pacific Indices
The S&P/ASX 200 failed to break out of its 5,655 to 5,800 sideways trending range and has dropped back to retest its 50 and 200-day averages near 5,740 with additional support possible near 5,725. .
The Nikkei 225 appears to be forming a flag pattern with the index consolidating above 17,795 its 50-day average and Fibonacci support following a spike rally up from 19,240. Initial resistance appears near 19,910 then 20,000. RSI suggests a pause within a bigger uptrend.
The Hang Seng is sending mixed signals. The index faltered short of 28,190 resistance and has dropped back under 28,000 toward 27,780 indicating a double top in place. Higher lows in the index are forming an ascending triangle but lower highs in the RSI are signalling slowing upward momentum and a downturn pending.
North American and European Indices
The Nasdaq 100 is still having trouble with 6,000 round number resistance where a double top appears to be forming. The index remains in an uptrend of higher lows tracking above its 50-day average near 5,900 with an ascending triangle forming. RSI remains above 50 confirming underlying accumulation continues through this consolidation phase.
The FTSE 100 has been pounded down to the bottom of its 7,300 to 7.500 trading range, diving down from 7,400 toward 7,290. RSI turning down from 50 confirms downward pressure increasing. Next potential support on a breakdown appears near 7,180. The current channel bottom coincides with the 200-day average.
The DAX is still hanging around 12,500 consolidating its recent rally at a higher level, trading between 12,480 and 12,560. RSI starting to roll over suggests upward momentum has peaked for now. Next resistance near 12,580 with next support near 12,440.
Commodities
Gold's latest selloff may be getting washed out. The yellow metal price broke $1,322 a 23% Fibonacci retracement, falling toward $1,314 before bouncing back up toward $1.327, forming a bear trap and hammer candle in the process. Initial rebound resistance possible near $1,335.
WTI crude oil continues to climb, retaking its 200-day average near $49.25 and taking a run at $50.00 round number resistance, peeking up toward $50.45 at one point. RSI above 50 and rising confirms upward momentum accelerating. Next potential resistance on a breakout near $50.75.
Copper continues to retreat, confirming its break down under $3.00 by falling toward $2.93 to complete a 38% retracement of its previous uptrend. RSI under 50 and falling off a cliff confirms downward momentum accelerating. Next potential support near $2.90 and the 200-day average.
FX
The US Dollar Index is consolidating its breakout from a downtrend and out of a base, with 92.00 becoming support and the index trading near 92.15. RSI approaching 50 where a breakout would confirm an upturn. Next resistance possible near 93.00 then the 50-day average near 93.30.
EUR/USD remains in a slump, with resistance falling toward $1.1900 and the pair retesting $1.1865 support at one point. RSI falling toward 50 indicates upward momentum fading and a downturn pending. Next potential support near $1.1800 then the 50-day average near $1.1755 on a breakdown. Initial rebound resistance possible near $1.1980.
EUR/GBP is breaking down in a big way today, decisively plunging below 0.9000 as it dives down from 0 9045 toward 0.8885 taking out 0.8925 a 38% retracement level along the way. Falling RSI confirms increasing downward momentum. Next potential support near 0.8865 a former resistance level then more potential Fibonacci support near 0.8805.
GBP/USD is soaring in a bullish engulfing day, rallying up from a successful test of $1.3150 Fibonacci support through $1.3220 and toward $1.3400 while support rises toward $1.3375. Next potential resistance near $1.3500 where a round number and Fibonacci level converge.
NZD/USD has resumed its broader downtrend with the RSI faltering at 50 and turning downward. Resistance for the pair falls toward $0.7255 from $0.7300 as it drops toward $0.7190 to test a 50% Fibonacci level. Next potential support near $0.7135 the August low.
AUD/USD continues to backslide, with resistance falling toward $0.8020 and the pair slipping back under $0.8000 toward $0.7970 initial support. RSI suggests upward momentum slowing. Next potential support at the 50-day average near $0.7900.
USD/SGD ran into resistance at a lower high near $1.3530 and has been knocked back under $1.3500 toward $1.3480 as its primary downtrend resumes. Next potential support near $1.3450 and $1.3400.
USD/JPY is breaking out of a downtrend, clearing 110.00 and then rallying from 110.40 toward 110.70 and a test of its 50-day average. RSI has regained 50 to signal an upturn in momentum Next potential resistance near 111.65 a 38% retracement of its previous downtrend.
GBP/JPY is testing 148.000 channel resistance but has been struggling to get through in the face of an overbought RSI. If successful, next resistance appears near the 150.00 round number. If it fails, however, initial support may not appear until 146.65 a recent breakout point, or even the 145.00 round number.
EUR/JPY is still sending mixed signals with an ascending triangle forming below 131.85 resistance indicating accumulation offset by a falling RSI indicating distribution. Next resistance near 133.70 with next support near 130.00 and the 50-day average.
USD/CAD is testing $1.2200 where a breakout would complete a rounded bottom base. RSI indicates downward pressure easing following a positive divergence with the pair working off oversold conditions. Next potential resistance near $1.2240 with initial support near $1.2170 then $1.2070.