The September U.S. dollar index is solidly higher in early morning dealings. Slow stochastics are bullish today. The dollar index finds shorter-term technical resistance at 85.50 and then at 86.00. Shorter-term support is seen at 85.00 and then at 84.66–this week’s low. The September Euro is lower in early trading. The Euro today finds sell stop orders are likely located just below shorter-term technical support at Tuesday’s low of 1.2764 and then more sell stops just below support at 1.2750. Shorter-term technical resistance for the Euro is seen at the overnight high and Tuesday’s high of 1.2837 and then at 1.2850. Buy stops likely reside just above those shorter-term resistance levels. Slow stochastics for the Euro are bearish.
Gold is trading solidly higher in early morning dealings. In August gold, prices hit a fresh five-week high of $649 in overnight trading. Shorter-term technical support is seen at the overnight low of $640.80. Sell stops likely reside just below that level, and then just below support at $635.00. Buy stops likely reside just above solid resistance at $650.00 and then more buy stops just above resistance at $655.00.
Prices are trading near steady in early electronic dealings, as traders await today’s weekly DOE report. Technical odds have increased recently that a near-term top is in place. In August crude, look for buy stops to reside just above resistance at Tuesday’s high of $74.60 and then at just above resistance at $75.00. Look for sell stops just below shorter-term support at the overnight low of $73.97, and then just below support at $73.50.
Prices were higher in overnight electronic trading. Weather forecasters are still saying a blocking high-pressure ridge is likely to set up over the western Corn Belt later this week and into next week, bringing hot temps and little or no precip to the region, and that’s bullish. Grain traders will continue to watch the “outside markets.” Higher gold prices today will support grain prices. Traders will examine this morning’s USDA supply and demand report. However, the weather forecasts will trump the USDA data.