Market Highlights
1 - Latest: UK military report a tanker struck in the Red Sea.
2 - Middle East tensions keep markets on edge. OiL continues higher.
3 - US stock markets give up gains to close lower, NASDAQ -0.57% ; European indices close up on the day, FTSE leading +1.21%
4 - Tesla Q2 profit misses
5 - ECB expected to hold with focus on Lagarde. Will EUR/USD break out of recent consolidation?
Daily Price Activity
Insights
USD INDEX The USD was slightly weaker today, breaking a 4 day bullish run. Geopolitical uncertainty and higher oil prices provided safe haven support for the dollar. Holding the 101.00 support zone was technically re-assuring for the near term. A move back to 101.50 would suggest renewed dollar strength, while a break below 100.50 could open the door for further weakness.
S&P 500 The index traded in a narrow range, slipping marginally, although basically closing unchanged from yesterday. Tech stocks were a drag and some profit taking contributed. Rising oil prices and higher US yields added pressure on equities. The index remains close to record territory with resistance at 7580. Support zone 7420-7450.
GOLD The metal had a strong session. Weak USD + risk uncertainty = gold bid. Higher oil prices continue to raise inflation concerns and support interest in precious metals. The bounce off the $4000 support now sees buyers eyeing $4150 on the way to testing the $4200 resistance.
BRENT OIL The uptrend remains intact as long as geopolitical/ middle east tensions have traders worried about disruptions in supply and shipping routes. The forward looking market shows no sign of a reprieve which would pressure prices lower. The $95-$96 level is the next resistance on the way to the pivotal and psychological $100 mark.
BITCOIN The cryptocurrency pulled back slightly after a steady run of recent gains. Possibly a brief round of profit taking rather than a trend reversal. BTC showed resilience despite a mixed equity session and rising geopolitical concerns that boosted gold and oil. Holding above $65K keeps the recent rally intact. Resistance at $66K-$67K with support $64.5K - $65K.
FX Pivot Levels
