USD INDEX
The downtrend gained momentum with a 3rd consecutive week of lower highs and lower lows on the chart. The Fed’s 25 bps rate cut (as expected), coupled with a dovish accompanying statement added to the sell-off. The bearish sentiment surrounding the USD and the strong technicals pointing lower have kept buyers on the sidelines. With the current price at 98.00 buyers, perhaps buyers appear a longer way off from the 100.00 level, than sellers looking down at the 96.00 mark? Resistance at 98.98 with sellers at 97.77.
S&P 500
Buyers were not able to hold on to the initial rally following Wednesday’s rate cut, as sellers stepped in Friday and reversed the gains. The week ended alongside the previous week’s close with a doji-like candlestick confirming the lack of direction. While technically the uptrend remains in place (EMAs), with a 4th consecutive higher high and higher low on the chart, sideways activity best describes the trend. Buyers will continue to test the 6900 level, while sellers aim below 6800. Resistance at 6973 with support at 6835.
GOLD
The metal broke out of the narrow sideways range which had been in place since the start of the month as buyers confirmed demand for the safe-haven commodity. The Fed’s rate cut and a weakening USD provided the push, or incentive, for buyers to renew the year long uptrend. Ongoing geopolitical uncertainty (Ukraine and Middle East particularly) continues to add to gold’s appeal. With 2 weeks until the year end, the record high $4381 (October 2025) mark is clearly in sight. Resistance at $4353 with support at $4171.
BRENT OIL
Sellers were in total control going on to once again test the stubborn support area which to date, buyers have successfully defended. Until the question of supply concerns enters the equation, technically the downtrend remains in place with downward pressure mounting on top of the $61 level. Resistance at $63.97 with support at $60.97.
BITCOIN
Buyers briefly attempted a fight back early in the week, however sellers stepped in and went on to push lower with a lower weekly close, adding to the strong downtrend. The cryptocurrency has failed to recover from the steep sell-off going back to early October with BTC sitting lower now than it did to start the year: Jan 6 2025 - $94K; Dec 14 2025 - $88K. The low for the year sits at $74.4K (April) with the year’s high at $126.2K (October). Buyers could see current levels as a higher low on the weekly chart. Sellers will look down at the $80K area as the next downside target. Resistance at $94.5K and support at $88.5K.
