Originally published by CMC Markets
Asia Pacific indices
The S&P/ASX 200 has dropped back under its 50 and 200-day averages into the bottom half of its 5,655 to 5,800 trading range. RSI slipping back under 50 confirms momentum starting to turn downward. Next potential support on a breakdown in the 5,580 to 5,600 area.
The Hang Seng continues to consolidate recent gains trading in a wide range between 27,480 Fibonacci support and 28,190 resistance. RSI holding 50 indicates the underlying uptrend remains intact. Recent trading between 27,770 and 27,850 with 28,000 round number resistance still in place.
The Nikkei 225 broke out Friday, blasting up off of 19,795 a Fibonacci level through 19,890 and on toward 19,985 and a test of the 20,000 round number. Rising RSI indicates increasing upward momentum with next resistance near 20,095 then 20,100.
North American and European Indices
The Nasdaq 100 is bouncing around between 5,950 and 6,000 having completed a double top. Next potential support near 5,900 and the 50-day average. RSI drifting toward 50 indicates upward momentum slowing. If it does manage to break out, next potential resistance may appear near 6,100 then 6,140.
The FTSE 100 is breaking down today, taking out the bottom of a trading range and its 200-day average near 7,300 to signal the start of a new downtrend. The index has dropped toward 7,210 with next potential support near 7,155 a 23% retracement of the post-Brexit vote advance, then the April low near 7,080. RSI confirms downward momentum accelerating.
The DAX continues to digest recent gains between 12,500 and 12,572 with the RSI confirming momentum levelling off. Next resistance possible near 12,660 with next support possible near 12,375.
Commodities
Gold continues to stabilize between $1,315 and $1,335 hovering around $1,322 a 23% retracement of its previous uptrend. RSI falling toward 50 indicates momentum slowing from upward to neutral. Next downside support near $1,300 with next rebound resistance near $1,345.
WTI crude oil continues to trend upward. The price has successfully tested its 200-day average and breakout point near $49.30 as higher support and is retesting $50.00 with next resistance after that possible near $50.45 then $51.70. Rising RSI confirms increasing upward momentum.
FX
The US Dollar Index has slipped back under 92.00 and appears to be resuming its downtrend falling away from a lower high set Thursday near 92.85. RSI remains below 50 indicating continued distribution for now. Next potential support near 91.40 and 91.00.
EUR/USD continues to trend sideways, consolidating previous gains between $1.1800 and $1.2100. The pair has moved up from $1.1910 toward $1.1970 with the $1.2000 round number looming.
EUR/GBP plunged Friday, diving down toward 0.8790 after retesting 0.8925 as Fibonacci resistance following a breakdown. Next potential downside tests near 0.8800 a 50% retracement of the previous uptrend then the 200-day average near 0.8700. RSI getting oversold so it wouldn’t take much to spark a bounce with initial resistance near 0.8885.
GBP/USD has gone parabolic to the upside blasting off from $1.3380 through $1.3500 a round number plus Fibonacci level and on toward $1.3619 before retrenching back toward $1.3570. RSI is getting really overbought but confirming upward momentum for now. It wouldn’t take much to spark some profit taking with initial support near $1.3550 then $1.3520. Next potential resistance near $1.3865 a 62% retracement of the post-Brexit vote selloff.
NZD/USD continued to bounce up off a successful test of $0.7190 a Fibonacci level with support moving up toward $0.7225 and the pair advancing on $0.7275. Next potential resistance appears near $0.7300 then $0 7335 and $0.7385. RSI back above 50 signals an upswing starting.
AUD/USD is hanging around $0.8000 drifting back from a shooting star peak where it briefly spiked up over $0.8100 last week. RSI drifting toward 50 indicates upward momentum fading back to neutral with a downturn pending. Next potential support near $0.7955 then the 50-day average near $0.7915.
USD/SGD has resumed its downtrend once again, diving back under $1.3500 toward $1.3465 after a bounce peaked at a lower high near $1.3545. RSI under 50 and trending downward indicates increasing distribution. Next potential support near $1.3400 then $1.3345.
USD/JPY continues to climb in a bullish engulfing day that saw it dip under 110.00 toward a higher low near 109.60 then soar up through 111.00 on its way toward 111.30. RSI back above 50 and climbing confirms momentum turning increasingly upward. Next potential resistance near 111.70 a Fibonacci level.
GBP/JPY has gone totally parabolic, blasting through 148.00 rallying up above 150.00 and peaking near 151.50 before starting to drop back. RSI is getting overbought suggesting the current rally may be vulnerable to a correction.
EUR/JPY broke out Friday, clearing 131.85 to complete an ascending triangle and signal the start of a new upleg on trend. The pair has advanced on 133.00 with next potential measured resistance near 134.35 then the 135.00 round number. RSI breaking out of a downtrend confirms upward momentum accelerating.
USD/CAD continues to bounce around within a $1.2070 to $1.2255 range where it has been consolidating. RSI climbing up from 30 indicates downward pressure easing and momentum moving toward neutral.