USD INDEX
Although sellers won out over the week from a technical perspective (red candlestick), practically we saw the sideways activity continue with neither buyers or sellers setting a new trend in either direction. Support at 97.07 with resistance at 97.79. In light of softer data (labour and inflation) recently and the US government shutdown delaying new upcoming numbers, coupled with record highs being set in the major US stock markets, the USD could be said to be showing a certain resilience.
S&P 500
The steady demand for US equities continued with the index going on to set yet another record high with a 4th consecutive higher high and higher low on the charts. Sellers remain reluctant to step in as yet with buyers looking higher, rather than looking down and entering a potential period of profit-taking for now. Resistance at 6798 with support at 6677.
GOLD
A 7th consecutive week of higher highs and higher lows with new record levels becoming the norm in the absence of previous resistance levels for technical traders to work with. And fundamentals add to the positive sentiment with geopolitical uncertainty adding to the safe haven commodity’s rally. Support at $3761 with resistance set at $3895. Brief periods of profit-taking have resulted in buyers eyeing the lower levels as buying opportunities with sellers quick to settle for brief runs to the downside.
BRENT OIL
Sellers had a strong week showing a succession of lower highs and lower lows on the daily chart, with significant support broken through on the downside, notably the $65 level. Resistance at $68.96 with support established at $64. The next downside target sits at $62 (May 2025)
BITCOIN
A strong rally saw the cryptocurrency move higher throughout the week and go onto set an all-time record high on Sunday October 5th. Support at $111.7K with resistance at $125.7K. With positive sentiment surrounding bitcoin and nothing in the way of technical barriers above the record high, moves to the upside could be sharp. Talk of safe haven status add to the attraction for buyers. Overbought technicals (RSI at 70 on dailies) and potential profit taking enter the picture at current levels. Sellers will aim below $122K in order to reverse the trend.
