USD INDEX
What a difference a week makes. Buyers were in control from the outset and maintained demand with a steady push higher comfortably taking out the previous weekly high. Sellers made no attempt to halt the positive mood, with strong US data lessening the probability of an immanent rate cut later this month. Resistance sits at 97.63 with support resting at 96.49. Note the relevant resistance level which matches the support from April 21.
S&P 500
While the S&P shows a doji candlestick within an uptrend on the chart, confirming indecision and a lack of direction, the technical picture does reflect that the bias is tilted to the downside. A double top on the weekly and daily charts signals the possibility of a reversal. Trumps indecisiveness and on -again- off again policy regarding tariffs leaves the equity markets tentative at the current record highs. Also, Trump’s constant degrading of Powell and the Fed’s rate policies could add to market uncertainty. Resistance sits at 6335 (matching last weeks level) with support at 6241.
GOLD
The metal added to last week’s gains, however the push was gentle with a lack of sellers contributing more than that of demand for the safe haven commodity. The weekly chart does reflect a series of higher lows without new highs being formed. Support sits at $3284 with resistance at $3367 - matching last week’s level. The EMAs confirm the trend remains down on the chart. While we saw sellers testing below the $3300 support area, buyers continue to step in and bounce up off the pivotal area. Noteworthy that USD and gold both moving in tandem, rather than the traditional inverse relationship between the 2 instruments. A sell-off in the USD could initiate a test of the $3400 mark on the upside.
BRENT OIL
A 2nd strong week for oil saw buyers establish a higher high and higher low on the weekly chart. Resistance at $70.69 with support lower at $67.22. Note the current resistance matches the support from late 2024. Geopolitical conflicts coupled with the effects that tariffs could have on the global economy contribute to the supply and demand concerns relating to the commodity. Buyers will aim to maintain above the $70 mark while sellers look down below the $69 level as a first step in reversing the trend.
BITCOIN
The breakout came?and buyers went on to establish new record highs as sellers have made no attempt to step in. Support sits at $107.5K with resistance at $119.5 going into the new week. That’s a $12K rally! Picking tops is difficult with the cryptocurrency trading in unchartered territory, with no previous resistance or support levels for reference. Perhaps the $120K mark could set up as a top, for now. Profit taking and overbought readings may contribute to retracements and pull-backs which will be reflected on the shorter time frames.
