Market Highlights
1 - US stock markets down on the day. S&P -0.38%, DJ -0.63%, NASDAQ -0.13%
2 - European indices close lower. DAX -0.68%, FTSE -1.31%, IBEX -0.12%
3 - Gold up $8 at $4706; Bitcoin struggles to hold above $80K handle, down $1400 at $79.9K
4 - Brent up after initial optimism fades; closes above $100 at $102.55
5 - USD gains across the board. USDX +0.29%, EUR -0.17%, GBP -0.26%, JPY +0.26%, CAD +0.20%
Daily Price Activity
Insights
USD INDEX As has become a regular pattern, the index lost ground through the Asian and European sessions, only for buyers to step in, recoup losses and go onto end the day with a higher close. Notwithstanding, a lower high adds to the downtrend. The 98.00 area continues to be a comfort zone as buyers and sellers struggle to hold onto intraday moves. Resistance at 98.13 with support at 97.66.
S&P 500 Buyers could not hold onto the early record high with sellers stepping in and recording a red daily candlestick. Note the candlestick adds a higher high and higher low on the chart as the uptrend remains firmly intact. Although a brief bout of profit taking is not unexpected, sellers did not panic and the natural retracement had no significant follow through. Resistance at $4712 with support at $7342.
GOLD Buyers made a strong start, only for sellers to step in at the USD session and give up almost all of the early gains (coincided with late USD rally). The green candlestick reflects a higher high and higher low on the chart, adding to the uptrend. Sellers will aim below $4700 while buyers will re-target the $4800 upside mark. Resistance at $4762 with support at $4683.
BRENT OIL Optimism re. the apparent new “deal” which US proposed to Iran was enough to see prices drop below the $100 mark early in the session. Apparently, the proposal leaves 2 matters to be settled at a later time: nuclear program and control of the straits of Hormuz. Nervousness and uncertainty, without further developments saw buyers step in and recoup losses to close back above the pivotal $100 level. The downtrend remains intact. Resistance at $102.61 with support at $96.13.
BITCOIN Sellers took control from the outset and went on to reverse gains from the past 2 days. The push lower got held up at the $80K mark which is shaping up to be a pivotal level. Next strategic downside support could be the test of the ascending trendline, coming in around the $78K mark. Buyers will look up to retarget $82K on the upside. Resistance at $81.6K with support at $79.4K.
FX Pivot Levels
