The September U.S. dollar index is slightly higher in early morning dealings. The greenback is supported on a flight-to- quality basis due to Middle East tensions that are still running high. Slow stochastics are bearish today, as the indicator lines are into overbought territory, suggesting a corrective pullback. The dollar index finds shorter-term technical resistance at Tuesday’s high of 86.93 and then at 87.00. Shorter-term support is seen at Tuesday’s low of 86.36 and then at 86.00. The September Euro is slightly lower in early trading. The Euro today finds heavy sell stop orders are likely located just below shorter-term technical support at Tuesday’s low of 1.2524 and then more sell stops just below support at 1.2500. Shorter-term technical resistance for the Euro is seen at Tuesday’s high of 1.2612 and then at 1.2650. Buy stops likely reside just above those shorter-term resistance levels. Slow stochastics for the Euro are now bullish, as both lines are into oversold territory, suggesting an upside correction very soon.
Gold is trading slightly lower in early morning dealings, and near the overnight mid-range. Bears are gaining downside technical momentum. In August gold, shorter-term technical support is seen at the overnight low of $618.90. Heavier sell stops likely reside just below that level, and then just below support at $610.00. Buy stops likely reside just above resistance at the overnight high of $634.00 and then more buy stops just above resistance at $640.00.
Prices are trading slightly lower in early electronic dealings, and near mid-range. In August crude, look for buy stops to reside just above resistance at the overnight high of $74.11 and then at $75.00. Look for sell stops just below shorter-term support at the overnight low of $72.78, and then just below support at $72.00.
Prices were lower in overnight electronic trading, as the bears are gaining more downside technical momentum as the weather forecasts for the Corn Belt are turning more bearish. Wheat has turned into a follower of corn and soybeans. Once again, updated weather forecasts will be key today. Still, the weather patterns in the Corn Belt certainly cannot be called bearish. Bulls can also argue that corn and soybeans are now technically oversold on a short-term basis, and due for at least an upside corrective rebound.