Market Highlights
1 - US stock markets close down on the day. S&P -0.49%, DJ -0.06%, NASDAQ -0.90%
2 - European indices closed mixed. DAX -0.02%, FTSE -0.01%, IBEX +0.4%
3 - Gold down $95 to $4596; Bitcoin turns down, losing $1000 at $76.3K; Brent edges higher amidst a nervous oil market, up $2.50 at $104.36
4 - USD gains with CAD leading the way +0.46%
5 - FOMC preview: Fed expected to hold rates as oil shock buries rate cut hopes.
Daily Price Activity
Insights
USD INDEX A strong start, followed by sellers stepping in through the US session, resulted in buyers managing to hang on enough to record a green daily candlestick, but only just. Notwithstanding the uptrend remaining intact, as well as a higher high and higher low on the chart, the late sell-off does leave a bearish taste. The technicals signalled a reversal on the shorter time frames - 4 hour and hourly. Resistance at 98.71 with support at 98.23.
S&P 500 Sellers controlled the day’s activity with a strong sell-off, doing enough to signal a reversal on the charts. Note bearish engulfing candlestick (bearish signal). Should sellers continue the push lower, a new bout of profit taking could add to the new downtrend. While sellers aim to test 7100 on the downside, buyers will look to retake 7200 on the way to resuming the uptrend. Resistance at 7223 with support at 7142.
GOLD The slow steady downtrend picked up steam today as sellers ended the day establishing a new monthly low, closing below the $4600 mark. While the USD gave up early gains during the US session, the metal was not able to fight back with limited demand for the safe haven commodity. The Fed hinting at holding rates adds to the downward bias. Resistance at $4709 with support at $4555.
BRENT OIL Without new material developments changing the fragile middle east landscape, the bias continues to move higher with a peaceful settlement looking further away rather than nearer. The pessimistic atmosphere has kept prices moving steadily above the $100 dividing line. The straits of Hormuz remains closed. Resistance at $105.63 with support at $101.90.
BITCOIN The double-top and bearish engulfing candlestick patterns played out today as sellers added to the push lower. Sellers will aim to test the ascending trendline while buyers look up to retake $78K on the way to retesting the $80K level. Resistance at $77.4K with support at 475.5K.
FX Pivot Levels
