Market Highlights
1 - TD Securities expects narrow BOE rate cut, warns sterling to stay weak
2 - US major indices rebound some of yesterday’s losses, DJ +0.48%, S&P +0.37%, NASDAQ +0.65%. European indices close higher on the day led by UK FTSE 100; DAX +0.42%, Ibex +0.39%, CAC +0.08%
3 - Gold up $55 to $3987; US 10yr yields up +6.4 bps
4 - WTI crude down $0.93 to $59.62; Bitcoin up 3.6% to $103.9K
5 - NZD leads, JPY lags
Daily Price Activity
Insights
USD INDEX Buyers held control with a steady push higher, although sellers stepped in late, erased the gains, resulting in the index closing back where it started. A doji-like candlestick confirms the stand-off. Note the higher high and higher low on the chart, adding to the well-established uptrend. Buyers guarded to 100.00 level which adds to the bullish bias. Resistance at 100.22 with support at 99.89.
S&P 500 Sellers were first out the block, adding to yesterday’s sell-off before buyers stepped in, recouped a portion of the early losses and doing enough to establish a green candlestick on the day. Notwithstanding today’s fightback, the chart reflects a lower high and lower low with the downtrend clearly intact. Resistance at 6858 with support at 6749.
GOLD Buyers bounced up off support and held on to recoup the majority of yesterday’s losses, yet not enough to take out yesterday’s high and therefore ended with a lower high on the day. The downtrend remains in place. Note that although buyers continue to guard the support area, it appears the demand is again not strong enough to re-test the pivotal 44000 level. Resistance at $3990 with support at $3928.
BRENT OIL Sellers pushed lower for the 3rd consecutive day and in so doing confirmed a new downtrend on the daily chart. Note the support area continues to hold strong, although at this time it does look as if buyers are standing on the sidelines showing no sign of stepping in. It appears the fear of a global slowdown, and an apparent, or potential oversupply of the commodity, are adding to the lack of demand. Resistance at $64.96 with support at $63.36.
BITCOIN Following yesterday’s extreme sell-off and break below significant support levels, buyers stepped in today and firstly broke, and then closed above the $100K mark. The daily chart shows a double bottom candlestick pattern which is a strong reversal sign. Buyers will firstly aim to test yesterday’s high at $107K with the descending trend-line being the goal to reversing the trend. Sellers will eye below the $100K mark on the way to maintaining the downtrend. Resistance at $104.5K with support at $98.7K.
FX Pivot Levels
