USD INDEX
A positive week for the U$ with a 4th consecutive candlestick displaying a higher high and higher low adding to the start of a new uptrend on the weekly chart. Support sits at 100.10 with resistance established at 101.86. Note buyers tested above the big picture year-long downtrend, although sellers stepped in above the 101.00 mark and kept price activity below the descending trendline. While technically the bias is up and fundamentals confirm the US economy is in good shape, USD sentiment remains questionable. Also, last week the worlds reserve currency was downgraded by Moodys, the universally acknowledged credit rating agency.
S&P 500
The 4th consecutive week of higher highs and higher lows as the equity index continues its strong showing with demand confirmed by the classic uptrend. Resistance established at 5975 with support set at 5728. Tariff scares and trade deals apparently settled, for now or 90 days at least, seems enough to clear the air of uncertainty as buyers maintain control while sellers remain on the sidelines. Buyers will aim for the 6000 mark on the upside while sellers aim below 5900 as a first target in starting any meaningful retracement. Noteworthy that the USDX and S&P are moving in the same direction.
GOLD
Sellers controlled price action through the week resulting in the 3rd red candlestick in the past 4 weeks. Support sits at $3117, a long $380 below the $3500 high established only last month. Weekly resistance was established at $3291. Currently the $3200 area appears to be a comfort zone for both sides. Buyers aim above $3300 to reestablish the uptrend while sellers look down at $3100 on the way to turning a natural retracement into a full-blown reversal. Big picture - $3000 could become the pivotal number should sellers add to last weeks losses. However, golds safe haven status remains intact and buyers have confirmed demand at all levels.
BRENT OIL
Buyers added to the strong bounce up from last week with resistance established at $66.89 and support set at $63.44. Factors which will influence the next move remain mixed: supply concerns, geopolitical conflict and recession fears vs a level of certainty regarding trade deals and stability surrounding the major equity markets. Taking a step back the big picture shows resistance at $67.65 - possibly a lower high from a downward perspective, or the net upside target for buyers to reverse the trend.
BITCOIN
A strong week for the cryptocurrency. The 6th consecutive green weekly candlestick. While both sides took turns at breaking out, $102K appeared to be the floor and $104.5K continued to be the ceiling. With an uptrend intact and positive crypto sentiment, bitcoin could be eying the record high $109K mark. Sellers look back at $100K as the first meaningful target in reversing the trend.
