Market Highlights
1 - US stock markets closed for Memorial Day. S&P Futures up 0.98%
2 - European indices closed up on the day, led by IBEX +2.2%, DAX +1.8%
3 - Gold rose $61.05 or 1.37% to $4570; Silver surged $2.57 or 3.42% at $78.05
4 - Bitcoin gained $550 or 0.71% at $77.5K
5 - USD lost ground across the board. EUR +0.34%, GBP +0.56%, AUD +0.69%, JPY -0.18%, CAD -0.12%
Daily Price Activity
Insights
USD INDEX A gap lower to start the week followed by an illiquid market with a public holiday in US - Memorial Day. Sellers controlled limited activity as the USD struggles to maintain above the relevant 99.00 mark. Reduced safe-haven demand (potential progress in US/Iran negotiations), oil down sharply, both contributing to the risk-on theme to start the week. Resistance at 99.03 with support at 98.84.
S&P 500 Stock markets closed for Memorial Day. Futures market moved higher indicating a positive tone going into the week. The 7500 looking pivotal and a psychological level for now. The last regular session (Friday 22nd) shows a +0.37% gain. For now, profit taking and overbought technicals not matching FOMO as traders recognize the strong run/opportunity. Resistance at 7574 with support at 7537.
GOLD After a gap up to start the week, buyers held on to gains with a slight move higher. Weaker USD supporting the bullish feel. Note today’s gentle push was just enough to signal a reversal on the chart (EMAs crossed up). Next upside target sits at $4600, while sellers aim below $4500 - the support which buyers have been protecting. Resistance at $4579 with support at $4548.
BRENT OIL The forward- looking oil market welcomes the optimism surrounding US/Iran negotiations with prices reflecting a best- case scenario. Prices dropped drastically to start the week ($100.39 Friday close - $95.89) as sellers continue to control the price action with current prices comfortably below the pivotal $100 dividing line. Noteworthy that for practical purposes the straits of Hormuz remain closed at this point. Resistance at $96.92 with support at $93.04.
BITCOIN The cryptocurrency has risen modestly to start the week. Crypto sentiment appears to be in-line with broader risk-on behaviour today. Technically we see a 3rd consecutive higher high and higher low on the chart, however activity is extremely limited within a $900 range. Buyers will aim to test and break above the $78K mark while sellers look below $76K in order to re-establish the downtrend. Resistance at $77.7K with support at $76.8K.
FX Pivot Levels
