Originally published by CMC Markets
A pickup in the US dollar Tuesday has sparked selloffs in a number of other currencies. Gold has been knocked back under $1,300 while declines in Australian dollar and New Zealand dollar accelerated. Singapore dollar and euro both have significant breakdowns against the US dollar underway today.
Asia Pacific Indices
The S&P/ASX 200 is holding steady in the lower third of a 5,650 to 5,800 trading range recently near 6,680. RSI bouncing between 40 and 60 confirms sideways momentum. Next potential support near 5,625 on a breakdown.
The Nikkei 225 has established higher support near 20,240 and bounced back up into the 20,320 to 20,400 range with next resistance near 20,490. RSI leveling off indicates a consolidation phase underway within an ongoing uptrend.
The Hang Seng found some support near 27.300 and has bounced back up toward 27,520, regaining 27,480 a Fibonacci level and its 50-day average in the process. Next resistance possible near 27,6510 with additional support near 27,440.
North American and European Indices
The Nasdaq 100 is still trading below 5,900 and its 50-day average, while the RSI remains below 50, all confirming Monday’s breakdown. Recently trading near 5,880, next potential support for the index appears near 5,840 then 5,760.
The FTSE 100 is sitting just below 7,300 the middle of a 7,100 to 7,500 trading range. Recent upside has been contained by the 200-day average near 7,323. RSI under 50 and falling indicates increasing downward momentum with next potential support near 7,270 then 7,200.
The DAX continues to trend sideways between 12,500 and 12,650 more recently trading between 123,580 and 12,630. RSI confirms neutral trend.
Commodities
Gold is sending mixed signals. The price ran into resistance near $1,315 and has dropped back, while the RSI failed to retake 50, indicating Monday’s rally as an upward correction within an ongoing downtrend. On the plus side, $1,300 has emerged as higher support for now, up from the 50-day average near $1,292.
WTI crude oil is consolidating Monday’s big breakout over $50.65, trading in the $51.50 to $52.00 area. Rising RSI confirms increasing upward momentum but is approaching overbought territory. Next potential resistance near $52.25 then $53.60 on trend.
FX
The US Dollar Index has broken through 92.45 to signal an upturn confirmed by the RSI retaking 50. Support rises toward 92.75 with next potential resistance near 93.15.
EUR/USD is breaking down today, building on the completion of a head and shoulders top by falling under its 50-day average near $1.1835 on its way toward $1.1780. RSI under 50 and falling confirms increasing downward pressure. Next potential support near $1.1685 a 23% retracement of its previous uptrend.
GBP/USD appears to be rolling over. The pair has retested $1.3500 as round number resistance following a breakdown and drifted toward $1.3455. RSI falling away from 70 signals a deepening correction. Next potential support near $1.3420 then $1.3380.
NZD/USD remains under pressure with resistance falling toward $0.7220 from $0.7280 and the pair falling toward $0.7200 with next potential support near $0.7170 then the 200-day average near $0.7145. RSI breaking under 50 and falling confirms downward pressure increasing.
AUD/USD is breaking down today. Confirming a break under $0.8000 by taking out its 50-day average near $0.7950 and diving down toward the $0.7860 to $0.7900 area. RSI breaking under 50 and falling confirms downward momentum accelerating. Next downside support possible between $0.7775 and $0.7825.
USD/SGD is breaking out of an ascending triangle base today, rallying up off of $1.3500 through $1.3540 and on toward a test of its 50-day average near $1.3565. Next potential resistance near $1.3605 then $1.3700. RSI regaining 50 confirms an upturn in momentum.
USD/JPY found support near 111.45 and has bounced back up through a Fibonacci cluster, clearing 112.00 and advancing on its the 200-day average near 112.15. Next resistance possible near 112.50 then 113.00 a Fibonacci level. Next potential support near 111.00 then the 50-day average near 110.35.
GBP/JPY continues to attract support at the 150.00 round number and appears to be moving into a consolidation range between there and 152.75, recently trading near 150.90, while working off an overbought RSI.
EUR/JPY has rolled back down from 134.40 toward 131.85 where it is testing a former breakout point as new support which has been working so far. RSI falling toward 50 indicates a correction underway but the underlying uptrend intact for now. Next potential support on a breakdown near 130.50 and the 50-day average.
USD/CAD is breaking out of a downtrend today, clearing $1.2370 and is testing $1.2400 where a breakout would complete an ascending triangle base. RSI retaking 50 signals momentum turning upward. Next resistance possible near the $1.2500 round number.