Market Highlights
1 - US stock markets recover late, reflecting slight losses to end the day; S&P -0.24%, NASDAQ -0.26%
2 - European indices close lower. DAX -1.15%, FTSE -0.55%, IBEX -1.1%
3 - Gold gains $60 at $4814; Bitcoin continues grind higher, up $2500 at $76.3K
4 - Brent continues to hover close to the $95 mark; ceasefire coming to an end and straits remain closed
5 - USD loses ground. Commodity currencies lead the way: CAD -0.44%, AUD +0.63%, with safe haven CHF strong -0.68%
Daily Price Activity
Insights
USD INDEX Sellers dominated activity wiping out the gap up to start the week. The week- long stubborn support area is again being tested late in the US session. Geopolitical: As the middle east conflict remains unsettled and fragile, clearly the status of the USD being the sole safety asset is being challenged. Yields: Potential Fed rate cut also contributing. Resistance at 98.25 with support at 97.78.
S&P 500 A gap lower to start the week did not last as buyers confirmed demand for US equities with another up day. The month-long uptrend remains firmly intact. The index trades in record territory and investors don’t want to miss out; coupled with expected profitable earnings in the big tech/AI sectors… all adding to the rally. As yet profit taking and overbought technicals have not yet slowed the upward momentum/demand. Resistance at 7161 with support at 7104.
GOLD Buyers added to the uptrend, although price activity continues to be contained within the established $100 range between $4750 - $4850. Weak USD and talk of rate cuts add to the move higher. Note the ascending channel. Buyers will look to guard the $4800 level while aiming to test $4900 on the upside. The metals resilience confirms the commodity’s safe haven status in current geopolitical conditions, particularly with the USD appearing to be out of favour. Resistance at $4826 with support at $4740.
BRENT OIL As has been the case since the 2- week middle east ceasefire was announced, oil prices have hovered close to the $95 area. The straits of Hormuz remain closed and the ceasefire expires in 2 days…now to see whether prices can remain “lower”, below the $100 mark? While a change to the current peace/settlement/ceasefire mood may well see prices spike to the upside with renewed outbreaks of hostility and threatening rhetoric, technically the chart reflects a downtrend with sellers in control. Resistance at $97.08 with support at $92.51.
BITCOIN Buyers won out on the day, erasing yesterday’s losses and in so doing adding to the upward bias. This current rally from the start of the month has seen previous resistance ($76K on March 17th ) broken and steady demand for the cryptocurrency being maintained. Note the ascending trendline reflecting higher lows on the daily chart. Buyers aim for $79K on the upside. Resistance at $76.3K with support at $73.7K.
FX Pivot Levels
