CURRENCIES
The September U.S. dollar index is firmer in early morning electronic dealings, supported by the North Korea crisis. Dollar index bears have gained some near-term technical momentum recently. Slow stochastics are hinting of a near-term bottom in the index, however. The dollar index finds shorter-term technical resistance at the overnight high of 85.01, and then at 85.50. Shorter-term support is seen at the overnight low of 84.59. The September Euro hit a fresh four-week low in overnight trading. The Euro today finds sell stop orders are likely located just below shorter-term technical support at the overnight low of 1.2810 and then more sell stops just below support at 1.2750. Shorter-term technical resistance for the Euro is seen at the overnight high of 1.2905 and then at 1.2925. Buy stops likely reside just above those shorter-term resistance levels. Slow stochastics for the Euro are well into over bought territory, however.
METALS
The metals are trading solidly higher in early morning dealings, on the North Korea news. In August gold, shorter-term technical support for August gold today is seen at the overnight low of $625.30. Sell stops likely reside just below that level, and then just below support at $618.50. Buy stops likely reside just above resistance at the overnight high of $632.50 and then just above shorter-term resistance at $643.50.
ENERGIES
Prices are trading slightly lower in early electronic dealings. Prices hit a fresh four-week high overnight. Selling interest will be limited today by the heightened geopolitical tensions today. In August crude, look for buy stops to reside just above resistance at the overnight high of $74.18 and then at just above solid resistance at $74.50. Look for sell stops just below shorter-term support at the overnight low of $73.38, and then just below support at $73.00. Bulls still have solid upside technical momentum are still eyeing $75.00 a barrel.
GRAINS
Prices were mixed to lower in overnight electronic trading. Prices pulled back just a bit following to holiday-type sessions of solid gains, amid a bullish USDA report last Friday morning, and weather in the Corn Belt that is now favoring the bulls. Weather forecasters are calling for hotter and drier weather in the Corn Belt in the early part of the critical growing month of July. Also, the “outside market” gold was solidly higher overnight, and that will limit selling interest in the grains today. The midday weather updates today will be extra important. Look for any downside price pressure to be seen as buying opportunities by many, for the near term.
