Originally published by CMC Markets
Asia Pacific Indices
The S&P/ASX 200 is trading back up near 5,750 still forming an ascending triangle of higher lows below 5,800. RSI near 50 and creeping upward indicates continuing accumulation as the index trends upward above its 200-day average recently near 5700. Next resistance on a breakout possible near 5,845.
The Nikkei 225 is accelerating downward today with the index falling away from 20,000 and the RSI falling away from 50 providing confirmation. The index has broken 19795 a Fibonacci level and is trading near 19,730 with next potential support near 19,485 a 38% retracement of its previous advance.
The Hang Seng is looking exhausted and vulnerable. The index recently peaked near 27,940 just short of the 28,000 round number and has dropped back toward 27,700. RSI overbought and rolling over indicates a correction possible. Next potential support near 27,500 then 27,320 a 23% Fibonacci retracement.
North American and European Indices
The Nasdaq 100 completed a double top near 6,000 Tuesday and is breaking down today taking out 5,900 and an initial trend support line. RSI has dropped to test 50 where a break would confirm a downturn in momentum. Next potential support near 5,845, then 5,800.
The FTSE 100 has rolled back under 7,500 failing to hold a breakout up toward 7,555. The index has dropped toward 7,490 with next potential support near 7,460 then 7,420. RSI bouncing around 50 indicates this could be a downswing within a sideways trend.
The DAX continues to sink toward the bottom of its 12,090 to 12,325 trading channel, with resistance dropping from 12,240 toward 12,160. RSI under 50 and falling indicates increasing downward pressure. Next potential support near 12,000 on a breakdown.
Commodities
Gold is breaking out today, rallying up off of $1,260, clearing $1,275 and advancing on $1,280 with next resistance after that possible near $1,295. RSI still trending upward confirms increasing accumulation.
WTI crude oil has regained $49.00 and is trading in the upper half of a $48.25 to $29.75 channel bounded by two Fibonacci levels. RSI in an uptrend and holding near 60 suggests this is a normal pause within a bigger uptrend. Next potential upside resistance in the $50.00 to $50.25 area.
FX
The US Dollar Index is consolidating Tuesday’s breakout from a downtrend, holding above 93.00 near 93.40. RSI back above 30 and climbing indicates downward pressure easing. Next potential resistance near 93.60 then 94.00.
EUR/USDcontinues to backslide in what looks like a deepening correction. The pair has dropped toward $1.1750 and the bottom quarter of a $1.700 to $1.1900 range. A breakdown would signal a deeper downturn underway with next potential support near $1.1595.
GBP/USD has stabilized near $1.3000 trading above its 50-day average near $1.2930 and $1.2970 a 23% retracement of its previous uptrend. RSI slipping under 50, however, signals momentum turning downward so the pair remains vulnerable. Initial resistance drops toward $1.3030.
NZD/USDfound support near $0.7300 and has bounced up toward $0.7340 but a lot of technical damage has been done and the RSI still below 50 suggests it may not be over yet. The pair appears to be moving into a Fibonacci trading range between $0.7275 and $0.7385 the 38% and 23% retracements of the uptrend that ran from May to July.
AUD/USD continues to retreat falling toward $0.78555 where it has completed a 23% retracement of its previous uptrend. Next potential support appears near $0.7815 then $0.7725 the 38% retracement level. Resistance falls toward $0.7920. RSI falling toward 50 where a break could confirm a downturn in momentum.
USD/SGD continues to steadily recover. Support moves up from $1.3600 toward $1.3620 The pair has advanced in $1.3640 with next potential resistance near $1.3675 then $1.3700. RSI gaining on 50 indicates downward pressure fading and confirmation of an upturn pending.
USD/JPY is breaking down today, taking out 110.60 then 110.00 on its way down toward 109.75. Falling RSI confirms distribution. Next potential support near 109.65 then 109.00.
GBP/JPY is breaking down today. The pair has followed breaking under its 50-day average by taking out 143.30, a Fibonacci level and dropping toward 142.80. RSI under 50 and falling confirms increasing downward momentum. Next potential support near 141.85 where the 200-day average and a 50% retracement converge.
EUR/JPY is breaking to the downside today, taking out former uptrend support and a channel bottom in the 129.50 to 129.80 area then falling toward 129.00. RSI falling under 50 confirms momentum turning downward. Next potential support near 127.45 the 50-day average.
USD/CAD has levelled off between $1.2640 and $1.2740 a 23% Fibonacci retracement of its previous downtrend recently trading near $1.2700. Oversold conditions have eased and the RSI holding below 50 indicates the recent rally has been an upward correction within a downtrend.