USD INDEX
The U$ roared back today as buyers rallied from 99.43 support to establish resistance at 100.58. The index reflected the overall dollar strength against a basket of currencies with euro, pound and yen testing significant resistance/support levels. There were no significant data releases, yet the mood was positive with trade deals, time to digest Powells positive assessment of the US economy, and a lack of negative news seemingly enough for the “feel good” sentiment.
S&P 500
Although buyers won the day with a daily candlestick to show, it was sellers that ended the session with momentum. Resistance was set at 5742 (matching the April 2 high) before reversing to close at 5686 - alongside yesterdays high. Support sits at 5637. While technically the trend is up, the sideways range between 5600 and 5740 remains intact.
GOLD
Sellers followed up on yesterday’s turnaround and added to the sell-off on the way to establishing support at $3288, with resistance set at $3415. The 2 day push down totals a significant -$146 move lower. Note the close at $3305 which brings the relevant, and potentially pivotal $3300 level into focus. The downward trend seems to be in accordance with the inverse relationship between the metal and both the USD and major indices. Add to the equation expected profit taking and the retracement appears to confirm a technical analysis move rather than a reflection of the commodities safe haven status. So far this year all pullbacks have been met with demand by buyers looking to buy gold at lower prices.
BRENT OIL
A strong rally saw oil fast out the blocks from $61 support to set resistance at $63.33, matching yesterday’s high. Buyers welcomed the US/UK trade deal as well as positive rhetoric surrounding this weekend’s upcoming trade talks with China. Todays push signalled the EMAs crossing upwards, however note that the high and low match yesterdays levels which have contained price activity for 6 of the past 7 trading days.
BITCOIN
The technical and fundamentals were lined up?waiting for the big push higher. Today the cryptocurrency rallied from $97K up to $104K as buyers were relentless with all demand and no supply as sellers stood on the sidelines. There will be bouts of profit taking and clearly the RSI at 76 confirms overbought conditions. However buyers will be eyeing the record highs at $109K should sentiment and fundamentals remain positive. Sellers will aim below the $100K mark to initiate any meaningful reversal.
