Market Highlights
1 - US stock markets close mixed. S&P -0.16%, DJ +0.11%, NASDAQ -0.71%
2 - European indices down on the day. DAX -1.62%, FTSE-0.04%, IBEX -1.56%
3 - Gold loses -$53 at $4714; Bitcoin down $1K at $80.6K
4 - Oil moves higher within a fragile US/Iran stalemate
5 - USD strengthens across the board. EUR -0.35%, GBP -0.45%, JPY +0.26%, CAD +0.16%
Daily Price Activity
Insights
USD INDEX A hot CPI (inflation) report, geopolitical concerns re. US/Iran, Fed turning to hawkish rather than looking at cuts…all contributed to the USD rally. Note buyers were unable to maintain above descending trendline at first attempt. Resistance at 98.33 with support at 97.83.
S&P 500 Sellers pushed the index lower through the Asian and European sessions (Futures trading) and into the early US session, only for buyers to put in a late run and erase earlier losses to close back at the open. Note the bullish candlestick pattern with the long wick (dragon-fly) = risk-on to end the day. Resistance at 7438 with support at 7363.
GOLD Sellers made the initial move lower, yet as with the USDX and S&P, a late reversal in the US session saw a day of 2 halves in the markets. In this instance, buyers bounced up off support and went on to erase half of the day’s losses. The metal closed close to the $4700 comfort area for the 5th consecutive day. Notwithstanding a red daily candlestick, the uptrend remains intact with a higher high on the chart. Resistance at $4775 with support at $4636.
BRENT OIL The fragile geopolitical situation in the middle east saw prices continue to move gradually higher as sentiment tends toward pessimism, rather than optimism, with US and Iran negotiations remaining locked in a stalemate. Prices reflect the mood, gradually moving up from the $100 dividing line. Resistance at $108.49 with support at $104.10.
BITCOIN Although buyers made a late bounce up in the US session, sellers won out on the day, adding to yesterday’s red candlestick with a lower high and lower low on the chart. Downtrend now in place. The narrow range remains intact, with buyers protecting the $80K support, while sellers guard the $82K upside. Resistance at $81.7K with support at $79.8K.
FX Pivot Levels
