Market Highlights
1 - Gold fundamentals remain unchanged despite the reversal, say analysts. -4.25% at $4776
2 - Brent oil down 2.30% at $67.35
3 - Bitcoin drops dramatically, -13.4% to $62K, contributing to a loss of 25% value this week
4 - Equity markets hit hard across the board. In US: S&P -1.23%, DJ -1.22%, NASDAQ -1.57%; In Europe: DAX -0.46%, FTSE -0.905, IBEX -1.79%
5 - Demand for USDs continues. USDX +0.35%, EUR -0.16%, GBP -0.78%, AUD -O.90%
Daily Price Activity
Insights
USD INDEX The trend is your friend. Buyers add to the uptrend with demand for USD continuing for the 7th consecutive day. The current rally has recouped over half of the losses we saw from January 16th 2025 - January 27th 2025 (99.28 down to 95.36) with today’s close at 97.83. Next fib retracement level 61.8% reads at 97.79. Resistance at 97.83 with support at 97.49.
S&P 500 Sellers added to the sell-off with a 3rd consecutive lower low and lower high on the chart. The strong push lower broke through the 3 month ascending trendline with ease, with buyers remaining on the sideline. The sell-off reflected on the index was seen across the board as the NASDAQ and DJI also had steep losses. Tech, software AI sectors hardest hit. Resistance at 6934 with support at 6801.
GOLD Sellers regrouped following yesterday’s reprieve with buyers unable to stage a fightback as downward pressure gained momentum into the close. While the downtrend reflects the steep move lower, technicals (RSI 49) are far from oversold as the $4500 appears to be the next target on the downside. On the flip side, fundamentals have not changed relating to the safe haven commodity and perhaps buyers will see the lower prices as a buying opportunity. Daily ATR for the metal stands at $218. Resistance at $5023 with support at $4751.
BRENT OIL Sellers stepped in with a strong push lower, doing enough to reverse the erratic trend direction from yesterday’s uptrend into a new downtrend on the daily chart. Note the current $2 trading range between $67 and $69 has provided a comfort zone for several periods last year, 2025. See the succession of higher lows making a case for a loosely formed ascending trendline since the start of the year. Resistance at $68.94 with support at $67.
BITCOIN The downtrend picked up steam with a massive, uninterrupted sell-off as the cryptocurrency lost $11K today, contributing to a 25% loss in value this week. As long as buyers stay away without demand for BTC, the next major target on the downside sits at the $50K mark (August 2024). Technicals would indicate a bounce up sooner rather than later, with RSI at 17, and no material fundamentals contributing to the drastic move. Potential buy opportunities will be signalled on shorter time-frames. Resistance at $73K with support at $62K.
FX Pivot Levels
