Market Highlights
1 - Gold up $32 to $4142
2 - US 10 yr yields down 2.3 bps; Powell remarks confirm Oct 28/29 rate cut expectations
3 - WTI crude down $1.03 to $58.47; China hits first US linked ship with $1.7m “special port fee” in trade retaliation
4 - US stocks close mixed. DJ rises, NASDAQ falls, S&P down 0.2%
5 - JPY leads, AUD lags; Canada was outlier as IMF downgrades, poor building permits reports, yet one of strongest performers on the day
Daily Price Activity
Insights
USD INDEX The indecision relating to the USD is reflected on the index chart - alternating between green and red daily candlesticks over the past 4 days. Today sellers won out, while technically the uptrend remains in place, (EMAs up) price activity has been moving sideways. Resistance at 99.22 with support at 98.72.
S&P 500 Sellers stepped in late erasing earlier gains and finishing the day back where it started. The doji-like candlestick confirms the stalemate between buyers and sellers on the index today. The strong sell-off Friday ensures the downtrend remains firmly intact. Resistance at 6723 with support at 6529. Note the bounce up from the intraday low (matching Friday’s low) confirming there is clearly still demand on the buy side.
GOLD Notwithstanding a brief, sharp one hour sell-off early in the Asian session, the pattern remains the same. Higher highs, higher lows and a new record high. Sellers (profit taking) remain cautious to add to losses, and it’s rather buyers that react to sporadic and infrequent pull backs. Demand for the safe haven commodity remains strong as lower prices continue to be seen as buying opportunities. Resistance at $4181 with support at $4089.
BRENT OIL Another strong day for sellers maintaining control of the market. Clearly supply overwhelming limited demand as the $60 level is clearly in view. Resistance at $63.62 with support established at $61.47. The re-emergence of tariffs (US-China) and threat of trade wars paint a clear technical picture with the downtrend firmly in place.
BITCOIN Sellers won out today and put a dent in the gains made over the previous 2 days since the weekend. The downtrend remains strong, although buyers will note the strong floor at the $110K level which has managed to hold strong, for now. Buyers were again held up at the $115K area and will need to break the level in order to initiate a reversal. Price activity above that mark may create renewed demand for the cryptocurrency. Resistance at $115.5K with support at $110K.
FX Pivot Levels
