USD INDEX
A similar pattern to yesterday?early USD weakness before buyers stepped in at the US open with a strong rally all through the session. The bias reversed to the upside with a higher high and higher low on the charts enough to signal a new uptrend. Support sits at 97.57 with resistance established higher at 98.41. In the absence of any single contributing factor to change the negative sentiment surrounding the U$, the 97 area has been confirmed as a strong floor with sellers unable to break below the support.
S&P 500
Following a gap up to start the day, sellers were in complete control and pushed prices lower from the opening resistance level at 6093, down to establishing support at 6029. Buyers remained on the sidelines. Note the clear inverse relationship between the USD and the equity index. While buyers will look up to regain the 6100 level, sellers will aim below the pivotal 6000 mark.
GOLD
Sellers added to yesterday’s sell-off and went on to set support at $3364. Resistance sits at $3385. Buyers may well see todays low as a new higher low in place as buyers wait to step in and reestablish the uptrend. Note the inverse relationship between the USD and gold did play out, although the metals move lower was constrained. The safe haven commodity retains its upward bias. Sellers will aim at the relevant $3300 mark below, while buyers look up to retake the $3400 level.
BRENT OIL
Supply concerns surrounding the middle east conflict has insured the demand for oil remains strong as buyers erased yesterday’s losses on the way to establishing resistance at $76.83. Support sits below at $72.54. Profit-taking and overbought readings (RSI 72) could see a natural retracement from current levels. Note the resistance matches levels tested (unsuccessfully) early this year - February 2025.
BITCOIN
The bias remains tilted to the downside as sellers controlled today’s price activity, adding to the downtrend with a lower high and lower low on the charts. Resistance sits at $107.7K with support established at $103.3K. The $100K mark looks to be the target for sellers while buyers look up to $108K as the level to reach in an attempt to re-establish a meaningful uptrend.
