USD INDEX
The steady USD sell-off through the day dropped sharply at the USD close with the global reserve currency hitting lows not seen since February 2022. Technically the move is reflected in the RSI reading at 22, confirming the extreme oversold conditions. US Consumer Confidence early in the US session plunged to the lowest reading since 2014. Going into tomorrow’s FOMC rate decision, (consensus is for rates to remain unchanged at 3.75%) Trump stated “the USD hasn’t declined that much.” Resistance at 97.09 with support at 95.37.
S&P 500
In contrast to the weak USD, the index conformed with the traditional inverse relationship between weak USD and strong equities. A higher high and higher low on the chart added to the uptrend as buyers broke above the relevant 7000 mark. Resistance at 7017 with support at 6979.
GOLD
A 7th consecutive higher high and higher low on the charts, contributed to yet another new record high for the metal with a 2.77% gain on the day. A weak USD, coupled with political turmoil on the US domestic front (potential government shutdown) as well as global geopolitical unrest, all contributed to the one-way traffic. The fact that there are no previous resistance levels as prices move in unchartered territory, add to the sharp spikes. Sellers remained on the sideline with neither profit-taking or overbought technicals (RSI 87) providing an incentive to reverse, or at least halt the rally. Resistance at $5181 with support at $5014.
BRENT OIL
Buyers took control early and went on to break through the $65 mark, and in so doing break above the descending trendline on the daily chart. Current resistance matches the highs from earlier this month, 14 January 2025. Should momentum and demand continue, buyers will aim to add to the uptrend with $70 being the next upside target. Resistance at $66.76 with support at $64.17.
BITCOIN
A gentle push higher, a 3rd consecutive higher high on the charts, yet buyers were held up between the $89 - $90K range with the downtrend still intact. Note the current range matches that of mid December, from where buyers broke out to the upside. While buyers aim above the $90K level, sellers look below $87K in order to re-establish the current downtrend. Resistance at $89.4K with support at $87.1K
