Market Highlights
1 - US indices close higher, S&P and NASDAQ close at record highs
2 - WTI crude down $1.49 to $66.89; US 10yr yields up 0.6 bps; Gold up $11 to $3324
3 - AUD leads, EUR lags; CAD makes headway ahead of jobs report
4 - Bitcoin broke above $113K to set new record highs
5 - European indices close mixed on the day; German DAX backs off after record high
Daily Price Activity
Insights
USD INDEX Trend, bias, EMAs all point upwards as buyers won out the day. However, the demand did little to move the index above its recent range as sellers stepped in late. Resistance at 97.59 with support set at 96.52. Prices have closed in the low 97 area for the past week. Noteworthy that the index is holding its own while the major FX pairs continue to reflect USD weakness.
S&P 500 Record levels as the major US equity markets continue to attract demand across the board. A 3rd consecutive day of higher highs and higher lows on the daily chart. Resistance established at 6334 with support below at 6287. The uncertainty surrounding tariffs and new trade deals has done little to halt demand for US equities.
GOLD A gap up to start the day followed by a gentle move higher as buyers maintain control. Resistance set at $3331 with support holding at $3309. The metal continues to trade in a loose, comfortable range between $3300 and $3350. Note that the safe haven commodity and the USD moved higher in tandem, rather than the traditional inverse relationship between the 2 instruments. Again, we see the $3300 level proving to be a strong floor for buyers with sellers unable to maintain below the area.
BRENT OIL Resistance set at $70.42 with support established at $68.56. Sellers stepped in at current resistance levels and went on to take out the previous 2-day lows, as buyers remained on the sidelines. We have learned that demand fades above the $70 mark as sellers aim below $68 in an attempt to reverse the trend. The recent price activity appears to be influenced by technical analysis rather than fundamental factors relating to supply and demand concerns.
BITCOIN It took over a week of sideways activity until buyers broke out, with today the 2nd consecutive day of demand for the cryptocurrency, with record highs being set. Resistance stands at $113.8K while support rests at $110.5K. As BTC trades in unchartered territory, the absence of resistance levels could see the rally continue to make sharp moves to the upside. Profit taking and oversold technical levels could initiate natural retracements on the shorter timeframes.
FX Pivot Levels
