Market Highlights
1 - Crude down $0.64 $69.35; Gold up 413.89 at $3289; BTC down $1.3K at $116.4K
2 - Trump hammers Switzerland with 39% tariff rate; no deal with China
3 - CAD little changed despite Trump ramping Canada tariff to 35% (from 25%)
4 - Major US stock indices give up gains and close lower on the day
5 - Major European indices closing mixed with France and Italy the big losers
Daily Price Activity
Insights
USD INDEX Buyers maintained control for a 6th consecutive day of higher highs and higher lows adding to the uptrend. Resistance set at 99.88 with support below at 99.28. Neither overbought technical indicators, bouts of profit-taking or negative USD sentiment have interrupted the rally. With the 100.00 mark clearly in view, it seems a new fundamental factor needs to enter the equation for sellers to step in.
S&P 500 Sellers made a statement today with a strong push lower adding to the downtrend - notwithstanding a brief early record high for the index. Resistance at 6471 with support established at 6356. While today was the 4th consecutive lower low on the chart, it remains to be seen whether the retracement is just that, or further develops into a meaningful reversal.
GOLD Buyers did enough to win out the day, but it was unconvincing. Although the daily candlestick is green, the chart shows a lower high adding to the downtrend. Resistance set at $3315 with support matching yesterday’s close at $3272. Note that the safe haven commodity was unable to maintain above the pivotal $3300 level. As long as the USD continues its strong rally, it seems gold will struggle to find buyers.
BRENT OIL Sellers put an end to this week’s run up and in so doing set up the foundation of a double top, which is a strong reversal sign. Resistance sits at yesterday’s close - $72.81 with support lower at $70.89. Note the higher low which adds to the uptrend.
BITCOIN Sellers won the day convincingly from a technical perspective, with a close below $117K. Resistance set at $118.9K with support at $116K. While sellers look to add to today’s sell-off and aim below $114K, buyers look up to regain $119K on the upside. The loosely formed descending triangle favours the downside.
FX Pivot Levels
