USD INDEX
The index reversed sharply last week, significantly breaking below the psychological 100.00 mark. While the Fed left rates unchanged at the FOMC meeting Wednesday, the market’s interpretation was less hawkish than was expected. Weaker than expected growth data reduced expectations of future tightening, yields declining and a general recovery in risk appetite all contributed to making the USD less inviting. Resistance at 101.49 with support at 99.54.
S&P 500
The index climbed back after a volatile week doing just enough to close higher and secure a green weekly candlestick. Price activity continues to trade in a well-established range between 7340 and 7550, basically trading in a sideways range for the past 2 months. Main drivers were better than expected corporate earnings across many sectors with Microsoft and Amazon outperforming. Although the Fed contributed to a volatile market, investors appeared to concentrate more on earnings than interest rate expectations. Resistance at 7551 with support at 7339.
GOLD
The metal had a mixed week, with a strong sell-off on Friday cancelling out earlier gains. The chart confirms gold has found a comfort zone over the past 2 months with neither buyers or sellers able to add to daily moves. The opposing factors include: gold’s safe haven status as the middle east conflict remains far from settled, a weakening USD, declining yields and an overall risk-on sentiment. Note the descending trendline displaying the series of lower highs. Technically the $4000 support continues to be guarded by buyers. Resistance at $4117 with support at $3988.
BRENT OIL
Oil dropped sharply to start the week as the forward looking market reflected a rapid unwinding of the geopolitical risk premium. Prices surged above $100 the previous week with renewed fears of supply and shipping interruptions. Then a ceasefire and a pause in US/Iran hostilities saw a recovery and prices back off to revisit the now pivotal $90 mark. Resistance at $90.02 with support at $80.48.
BITCOIN
A negative week for the cryptocurrency with price activity contained within a relatively narrow $2K trading range. After bouncing off the $60K support area, BTC has failed to attract new buying interest with investors wary of sellers stepping in at current resistance levels. Note the new descending trendline capping further gains, for now. Resistance at $65.5K with support at $63.3K.
