USD INDEX
A day of 2 halves saw the USD sell off early to start the new trading week - Asian and European sessions - only for buyers to step in during the US session and finish on the front foot, erasing most of the early losses. The daily candlestick remains red with the downtrend intact and a lower high on the daily chart. Support sits at 97.21 with resistance established at 97.93. The 97 area has proved to be a solid floor as buyers will look up to retake the 98 level.
S&P 500
US equity markets had a strong day with demand maintained all through the trading session. The S&P recouped Fridays losses with buyers establishing resistance at 6106, and support below at 6003. Buyers will aim to maintain above 6100 and reestablish the uptrend, while sellers look to bounce down off current levels and re-target the pivotal 6000 level on the downside. Interesting that traders have not been scared off by the escalating middle east conflict.
GOLD
Sellers were in control and by the end of the day had erased all of Friday’s gains. Resistance sits at $3451 with support established at $3380. Noteworthy that the metal moved in the opposite direction to the S&P (inverse relationship) and the USDX. Technically we see buyers have struggled to maintain above the $3400 area, although buyers have stepped in at all levels following pull backs and retracements. The bias remains tilted to the upside and vulnerable to a renewed push higher as gold maintains its safe haven status amid global geopolitical and financial uncertainty.
BRENT OIL
A volatile day saw price activity trade within a wide $5 range. Sellers won the day with resistance set at $75.49 and support established at $70.61. Prices will continue to react to a number of factors, namely supply concerns relating to the middle east conflict as well as fears of a global economic slowdown. The $70 mark appears to be shaping up as the floor for sellers with today’s resistance level matching the highs from April 2nd - the level looking like a ceiling for now.
BITCOIN
A strong day for the cryptocurrency which broke higher and reversed the preceding downtrend. A 5K range saw support at at $104.9K with resistance established at $108.9K. As long as demand prevails, buyers will look to break above $110K and perhaps the momentum will see a test of the $112K record highs. On the downside sellers will look down at the $105K support area.
