Originally published by CMC Markets
There are a number of significant technical moves underway today. Euro is under pressure with EUR/USD completing a head and shoulders top following the German election. The Nasdaq 100 is breaking down, dragged lower by big cap tech stocks. On the other hand, gold is rallying, regaining $1,300 while WTI crude oil has broken out to the upside.
Asia Pacific Indices
The S&P/ASX 200 keeps drifting down toward the bottom of its 5,650 to 5,800 trading range, slipping back under 5,700. RSI near the bottom of a 40-60 range confirms that a sideways trend could fail. Next potential support on a breakdown near 5,615 then 5,575.
The Nikkei 225 is still drifting back from 20,490 resistance as it pauses to work off an overbought RSI. The index continues to attract support above 20,300 with its next downside tests possible near 20,100 then the 20,000 round number.
The Hang Seng is breaking down today, confirming a break under 28,000 by taking out an uptrend support line near 20,770 and then diving down through 278,00 and 27,480 a Fibonacci level plus the 50-day average on its way toward 27,360. RSI breaking 50 confirms a downturn in momentum. Next potential support between the 27,000 round number and 27.045 a Fibonacci level.
North American and European Indices
The Nasdaq 100 continues to accelerate downward away from a double top near 6,000. The index has broken down below its 50-day average while the RSI has broken under 50 to signal a downturn in momentum. Next potential support near 5,840 then 5,770.
The FTSE 100 continues to struggle with resistance at its 200-day average near 7,325, slumping back down under 7,300 and on toward 7,290. RSI indicates momentum still trending downward. Next support possible near 7,255 then 7,200.
The DAX continues to pause between 12,550 and 12,650, digesting recent gains in what looks like a normal consolidation phase within an ongoing uptrend.
Commodities
Gold has bounced strongly up off of its 50-day average near $1,290, retaking $1,300 and advancing on $1,308. The RSI still needs to retake 50 to confirm an upturn but looks close to doing so. Next potential upside resistance in the $1,312-$1,315 area then $1,322 a Fibonacci level.
WTI crude oil is breaking out today, clearing $50.55 to signal the start of a new upleg and taking a run at $52.00 while support rises toward $51.30. RSI breakout confirms increasing upward momentum. Next potential resistance near $53.00 then $54.00 on trend.
FX
The US Dollar Index has regained 92.00 moving back into the upper half of a 91.00 to 93.00 trading range. RSI approaching 50 where a breakout would signal an upturn in momentum. Initial resistance possible near 92.60.
USD/JPY ran into resistance near 112.50 again and has started to turn back downward. The pair has dropped into a 111.65 to 111.95 initial support zone. A failure here would signal the start of a new downtrend with next tests possible near 111.00 then 110.35 near the 50-day average.
EUR/USD is breaking down today, taking out a rising neckline near $11.900 to complete a head and shoulders top and then falling toward $1.1840. RSI breaking under 50 signals momentum turning downward. Next potential support at the 50-day average near $1.1825 then $1.1685 a 23% retracement of its previous uptrend.
EUR/GBP is sending mixed signals. The RSI suggests downward pressure easing, but the pair remains in a downtrend and is currently testing the bottom of a 0.8870 to 0.8890 consolidation range with next support on a breakdown possible at the 200-day average near 0.8720.
GBP/USD continues to consolidate recent gains and work off an overbought RSI trading near $1.3500 a round number and Fibonacci level, in a range mainly between $1.3440 and $1.3600. Next support on a breakdown possible near $1.3400.
NZD/USD appears to be regaining its footing in the $0.7260 to $0.7290 area after a post-election downdraft. The pair bottomed at a higher low keeping its underlying uptrend intact. Initial upside resistance near $0.7320 then $0.7360 with next support possible near $0.7200.
AUD/USD remains under pressure trading below $0.8000 and sitting on its 50-day average near $0.7940. RSI also remains below 50 confirming the recent breakdown. Next potential support near $0.7910 then $0.7875.
USD/SGD has regained $1.3500 as it continues to build an ascending triangle base between $1.3400 and $1.3540. RSI testing 50 where a breakout would confirm an upturn. Next potential resistance at the 50-day average near $1.3570 then $1.3600.
GBP/JPY is rolling over today, falling back to retest 150.00 support, which has held so far, from 151.50. RSI back under 70 from overbought signals a correction starting. Next potential support near 148.00 a recent breakout point. Initial bounce resistance near 150.70.
EUR/JPY is breaking down today, taking out 133.50 to signal a recent rally has failed and a correction starting. The pair has dropped back to retest 131.85 a recent breakout point with next support after that near the 130.00 round number. RSI falling toward 50 from a negative divergence indicates upward momentum weakening and a downturn pending.
USD/CAD remains under distribution with downtrend resistance near $1.2400 holding and the RSI holding under 50 confirming continued downward momentum. The pair has dropped into the $1.2310 to $1.2350 range with next potential support near $1.2255.