The September U.S. dollar index is solidly higher in early
morning dealings, supported on a flight to quality due to
Middle East tensions. Slow stochastics are bullish again
today. The dollar index finds shorter-term technical
resistance at the overnight high of 86.62 and then at the
June high of 86.68. Shorter-term support is seen at 86.00
and then at the overnight low of 85.84. The September Euro
is solidly lower in early trading. The Euro today finds
sell stop orders are likely located just below shorter-term
technical support at the overnight low of 1.2580 and then
heavy sell stops just below support at the June low of
1.2550. Shorter-term technical resistance for the Euro is
seen at 1.2600 and then at 1.2650. Buy stops likely reside
just above those shorter-term resistance levels. Slow
stochastics for the Euro are still bearish today.
Gold is trading lower in early morning dealings. Prices hit
overnight a fresh seven-week high of $677.50, but have
backed well off that high. In August gold, shorter-term
technical support is seen at the overnight low of $663.10.
Sell stops likely reside just below that level, and then
just below support at $660.00. Buy stops likely reside just
above resistance at $670.00 and then more buy stops just
above resistance at $675.00.
Prices are trading solidly lower in early electronic
dealings, and nearer the overnight low. In August crude,
look for buy stops to reside just above resistance at
$77.00 and then at the overnight high of $77.74. Look for
sell stops just below shorter-term support at the overnight
low of $75.60, and then just below support at $75.00.
Prices were mostly lower in overnight electronic trading.
It was very hot and dry over the weekend in the Corn Belt,
but there is a chance for some rain early this week. This
morning’s updated weather models will dictate today’s price
action. Don’t place a lot of emphasis on overnight price
action during a weather market in grains, as weather
updates can turn markets on a dime. For corn, we are right
at the critical pollination stage for much of the crop. My
bias is that the weather market in the grains is not
finished and that there will be more upside fireworks in
the near term–but trading will likely remain choppy.