Market Highlights
1 - US stocks close mixed, DJ up, NASDAQ lower, s&p unchanged
2 - European equities close higher on the day. FTSE + 0.42%; IBEX +0.80%
3 - Crude oil futures close at $82.61; Gold slightly down at $4081
4 - USDX continues move higher; GBP/USD -40% at 1.3283
5 - Trump on Iran “I have plenty of time”
Daily Price Activity
Insights
USD INDEX The uptrend continued today with buyers erasing early losses and going on to match current resistance levels from last week. Today’s move could well be traders positioning themselves before Wednesday’s FOMC. While rates are expected to remain on hold, the consensus has a bullish tone. Support at 100.94 with resistance at 101.38.
S&P 500 Typical inverse relationship played out between strong USD and weak equities. A bout of profit taking as investors wait for new Fed chairman Kevin Warsh at the FOMC meeting on Wednesday. Note buyers have continued to guard the current support level since mid June. Resistance at 7524 with support at 7414.
GOLD The metal weakened slightly today, although relatively flat, trading within a tight range. Strong USD contributed, as did reduced safe-haven demand with middle east tensions de-escalating. A bout of profit-taking pre upcoming FOMC is also natural. Today felt like a mixed session rather than totally risk-off. The $4100 mark continues to look pivotal. Resistance at $4116 with support at $4066.
BRENT OIL Oil was the big mover, down 7% on the day. The middle east premium moved lower with US/Iran tensions de-escalating, thereby reducing fear of ongoing or new supply and shipping disruptions. Profit-taking following last week’s surge contributed. Resistance at $88.73 with support at $84.32
BITCOIN The cryptocurrency weakened slightly, with no new trend direction as the sideways activity continued within a narrow $1.5K range. BTC appears to take neither side: does not act as a safe -haven in terms of geopolitical conflict, while at the same time not falling into a classic risk-off environment - European stocks moved higher and oil dropped sharply today. Resistance at $65.7K with support at $64.2K
FX Pivot Levels
