USD INDEX
Notwithstanding a fightback late in the week, sellers continued to dominate price activity with a lower low and lower high adding to a strong downtrend. From a buyer’s perspective we did see that the 96 level proves to be a strong floor and held up as a solid support area. Resistance sits at 97.12 with support established at 95.96. While US data (strong job numbers) reflects a robust economy, negative US sentiment weighs on the global reserve currency.
S&P 500
In contrast to a weak USD, major US equity markets continue to attract demand with the S&P setting record highs with buyers in control and sellers standing on the sidelines. Resistance was established at 6337 with support set at 6222. The succession of higher highs and higher lows add to a well-established uptrend. Natural retracements and limited bouts of profit taking have done little to reverse the trend as it appears that new fundamentals on the tariff/trade deal front will dictate the mood. No news is good news continues to be the theme.
GOLD
The metal bounced back this week, in keeping with the inverse relationship between weak USD and strong gold. Technically the contradiction on the charts shows the green weekly candlestick reflects a lower high as the downtrend remains intact. Resistance sits at $3366 with support at $3256. Buyers confirmed the $3300 level remains pivotal as sellers were unable to maintain below the area. Noteworthy the weekly double top (reversal sign) from June 16th remains in place, plus the daily charts signal a bearish engulfing candlestick (reversal sign) following Friday’s close. Also interesting is the fact that demand for the commodity’s safe haven status has taken a breather since the middle east conflict started (June 13).
BRENT OIL
In response to the previous week’s $12 crash, oil recovered slightly to recoup a portion of the loss. Support stands at $65.85 with resistance at $69.12. Current prices are back to the pre middle east conflict price range. Note the solid $66 support which has held for the past 4 weeks. Buyers will aim above $70 while sellers look below at the $65 area.
BITCOIN
Buyers added slightly to the previous week’s strong showing, yet unable to make a meaningful break above the $110K level. Support was set at $104.9K and resistance established at $110.6K. With the bias tilted higher, buyers will be eying the record highs around the $112K area, while sellers aim below $105K in an attempt to reverse the uptrend.
