USD INDEX
Buyers take one step forward and then two steps back. Sellers controlled price activity following the US data release (CPI) and went on to reinstall the long-term downtrend. Negative sentiment continues to surround the global currency with talk of a rate cut adding to the mood. Resistance at 98.49 with support lower at 97.66. Note support matches the April low.
S&P 500
Demand for US equities across the board today. S&P tested record levels and went on to close at a record high. Note the inverse relationship with the weak USD. Support at 6391 with resistance established at 6468. Sellers will aim below 6400 in an attempt to reverse the trend, although for now they remain on the sidelines. Neither overbought technical indicators, or profit-taking, have put a stop to the uptrend.
GOLD
A rest day for the metal saw limited activity as price action was contained within a narrow $28 range. Support at $3331 with resistance at $3359. Sellers aim below the pivotal $3300 mark, while buyers look up to retake the $3400 level. Noteworthy that gold did not rally with the USD sell-off, as is the traditional inverse relationship between weak USD and strong gold. The commodity’s safe haven status remains in place with buyers quick to step in and protect technical pushes lower from time to time.
BRENT OIL
Price action continues to range sideways while remaining at the well-established support area. As was the case in June, sellers have not been able to maintain below the $66 level. Resistance sits at $67.09 with support at $65.98. Concerns of an economic slowdown continue to weigh on the commodity. Buyers look above $67 as a first step to reverse the trend.
BITCOIN
Buyers won out on the day, with a gentle push higher. Price activity was limited as the cryptocurrency traded within a narrow $2K range. The uptrend remains intact with buyers ready to re-test above $120K. The bias remains up from a technical perspective as well as fundamentals and rhetoric favouring demand over supply.
