USD INDEX
The index was relatively unchanged for the week. The gains (green candlestick) reflected on the chart was basically due to the gap lower to start the week, with the weekly close almost matching that of the previous week. The sideways trend/activity is expected to react sharply to the US attack on Iran over the weekend. Traditionally, USD would strengthen on geopolitical conflict escalating to war, however the US being the waring faction is a new fundamental which the markets will absorb, and react accordingly. Resistance at 97.93 with support at 97.28.
S&P 500
The sideways activity continued this week with buyers setting the pace early, followed by sellers taking control to close the week. The narrowing range forming a symmetrical triangle is technically a precursor of a potential outbreak. The stock market’s response to the middle east conflict which escalated into a full-scale war in the region will be revealed in 2 stages: firstly, when the futures market begins trading in the Asian session, and then again when Wall street opens at 9.30 am EST in the US session. Resistance at 6969 with support at 6825.
GOLD
Another strong week for gold with a 4th consecutive higher high as buyers controlled the activity. The metal’s safe-haven status should see further demand when the new trading week opens following the outbreak of war in the middle east. The record high from earlier this year (January 26 2026) at $5595 could be challenged with a nervous market looking for an alternative to the USD, and/or traditional equity markets. Resistance at $5280 with support at $5090.
BRENT OIL
Following a nervous week of wait and see, Friday saw a breakout hours before the US and Israel launched the first strikes on Iran. The $3 rally saw oil trade at it’s highest level since June 23rd 2025. Extreme volatility is expected to continue into the new week with uncertainty surrounding supply issues and/or immediate disruptions to shipping routes in the area. Resistance at $73.56 with support at $69.13.
BITCOIN
A 6th consecutive red weekly candlestick confirming a strong downtrend and lack of demand for the cryptocurrency. The next downside target sits at $60K (low February 2nd 2026). To date BTC has failed to attract demand as a safe-haven commodity/asset. With the current middle east war now having evolved from rhetoric to full-scale conflict, will the global perception of Bitcoin remain the same from an investment/safety perspective? Resistance at $70.3K with support at $62.5K
