Market Highlights
1 - US stock markets rally. S&P +0.77%, DJ +0.75%, NASDAQ +0.88%
2 - European indices close up on the day. DAX +1.3%, FTSE +0.41%, IBEX +0.87%
3 - Gold down $46 at $4650; Bitcoin gains $2.3K at $81.5K
4 - Brent flat at $106.55 as US/Iran stalemate continues with straits remaining closed
5 - USD gains across the board. EUR -0.41%, GBP -0.96%, AUD -0.48%, JPY +0.34%, CAD +0.14%
Daily Price Activity
Insights
USD INDEX The 3rd consecutive day of higher highs and higher lows as buyers add to the uptrend. Contributors remain the same: hot inflation data means a hawkish Fed; higher yields; middle east tension and high oil prices all add up to demand for the world’s reserve currency. Resistance at 98.74 with support at 98.31.
S&P 500 AI and Tech earnings appear more relevant than macro risks as the index continues to make record highs. This despite rising yields, hotter inflation and oil prices. Add to those fundamentals momentum and FOMO. As yet, overbought technicals and profit-taking do not seem a concern. Resistance at 98.74 with support at 98.31
GOLD The inverse relationship between strong USD and weak gold continues to play out, with the 3rd consecutive lower high, enough to signal a trend reversal on the daily chart. However, the safe haven commodity continues to show resilience as buyers guard the support level, for now. Note the descending triangle formation - bearish pattern. Resistance at $4718 with support at $4660.
BRENT OIL The stalemate between US and Iran is reflected on the daily charts which reflect the narrow sideways activity with prices hovering close to the $105 - $106 area. The uncertainty and nervousness keeps prices above $100 which continues to be the pivotal dividing line between optimism (a deal being reached and the straits opening) and pessimism (no agreement, war continuing and straits remaining closed). Resistance at $107.31 with support at $103.73.
BITCOIN Following 3 down days, buyers stepped in with a strong bounce up, significantly breaking above the $80K resistance level. Next upside target remains the $82K mark which has been guarded by sellers throughout the month. Note price activity is back above the ascending trendline. Resistance at $82K with support at $78.8K.
FX Pivot Levels
