USD INDEX
Today saw a flight to USD safety/liquidity as the financial markets anticipate next steps in the US/Iran negotiations. Buyers stepped in early, bouncing up off the strong support. No clear direction as buyers and sellers trade punches within the recently established 5-day range. Resistance at 98.40 with support at 97.87.
S&P 500
The solid red candlestick marks the end of a record-setting rally which has been in place since the start of the month. Nervousness surrounding the end of the middle east ceasefire which is nowhere near to settled, overbought technicals and profit taking all contributed. Part 1 of double-top candlestick pattern established (bearish signal). Note sellers were held up at yesterday’s support, preventing a lower low on the charts. Resistance at $7180 with support at 7083.
GOLD
A substantial sell-off saw the metal hit a 5- day low, enough to reverse the preceding uptrend. Notwithstanding the strong push lower in keeping with the inverse relationship between strong USD and weak gold, the safe haven commodity may yet find renewed interest (demand) as the middle east ceasefire comes to an end with parties finding no common ground on which to proceed. Buyers will aim to guard the $4700 mark. Resistance at $4826 with support at $4668.
BRENT OIL
An optimistic push lower, followed by a bounce higher as the ceasefire comes to an end. US and Iran have yet to find an agreeable solution to the straits of Hormuz, and as such supply concerns remain heightened. Prices continue to settle close to the $95 mark in “optimistic” territory - closer to $90 than the $100 dividing line. Resistance at $95.47 with support at $89.37.
BITCOIN
An uneventful day for the cryptocurrency. Price activity contained within a narrow $2K range. Both buyers and sellers made brief moves in either direction with no follow through. The doji-like daily candlestick confirms the indecision. From a bullish perspective: sellers were not able to derail the upward bias and the ascending trendline remains intact. Buyers will continue to target the $79K mark on the upside. Resistance at $76.8K with support at $74.7K.
