Traders across continental Europe and Canada return to work today to relatively quiet stock markets which have had a strong run in recent weeks but continue to level off through a quieter period for corporate and economic news. There continues to be a lot of action in currency markets. Gold and silver had a wild day yesterday selling off early then staging major positive reversals in what appears to be a big capitulation washout. Today precious metals are trying to build bases amid improving technicals. USD continues to consolidate its recent gains but doesn’t appear ready to push higher with DXY hovering around its key 84.00 level. Although there are two Fed speeches later today, the street appears to be more focused on tomorrow’s Bernanke speech and FOMC minutes for an indication on how long the central bank may be prepared to keep the QE party going. JPY has been weakening again today but could be more active tonight around the Bank of Japan’s meeting and policy decision. GBP has been weakening again today in response to today’s benign UK inflation numbers which suggests that incoming Governor Carney has a lot of room to act decisively when he takes over in July. Resource dollars (CAD, AUD and NZD) remain under distribution as the global economy and outlook for resource demand remains soft and USD remains stronger. The energy group is retreating again with the exception of natural gas which keeps climbing, bucking its historical seasonal trend. Grains find themselves in retreat after the weather finally improved enough for a big planting drive last week. Wheat and corn have fallen off faster than soybeans where planting remains well behind schedule. Economic News Significant economic announcements released overnight include: UK consumer prices 2.4% vs street 2.6% UK retail prices 2.9% vs street 3.1% UK producer input (0.1%) vs street 0.3% UK producer output 1.1% vs street 1.4% Highlights of this week’s USDA crop report include: Corn 71% planted vs 28% last week and 79% on average Soybeans 24% planted vs 42% average Winter wheat 31% good/excellent vs 58% last year Spring wheat 67% planted vs 43% last week and 76% on average Cotton 39% planted vs 23% last week and 52% on average Economic reports due later this morning include: There are no major announcements scheduled for North America later today. Fed governor Bullard speaks at 11:30 am EDT followed by Fed Governor Dudley at 1:00 pm EDT. Corporate News Home Depot $0.83 vs street $0.76 Best Buy $0.32 vs street $0.24 North American Indices US30 remains in an uptrend but appears to be pausing for a rest in the 15,300 to 15,400 area to work off an overbought RSI with next support near 15,210. SPX500 has backed away from yesterday’s new high near 1,675 back toward 1,665 a previous measured objective. Overbought RSI suggests it’s due for a rest. Initial correction support near 1,645. NDAQ100 has levelled off in the 3,000-3 030 area with falling RSI suggesting upward momentum fading and a measured move toward 3,010 having been achieved. US SmallCap 2000 Is starting to struggle with 1,000 where a huge psychological barrier and measured move converge with more resistance possible near 1,010 and initial support near 980. Canada60 (Toronto60) is testing the high end of a 715 to 724 channel but could get a boost from yesterday’s precious metal bounce. Next resistance near 730 then 743 and next support near 710 then 700. Commodities Gold has dropped back toward $1,375 after a big bounce ran into resistance near $1,400. With support coming in near $1,370, a bullish reverse H&S base appears to be forming. Silver is consolidating in the lower half of its $22.00-$24.50 trading channel. A big selloff down toward $20.00 combined with a big key reversal bounce and positive RSI divergence suggests the bears may be washed out for now. Platinum is trying to stabilize in the $1,445 to $1,485 range. It has established an encouraging higher low but needs to clear $1,500 to confirm the start of a new advance. Copper remains in an uptrend, confirmed by rising RSI momentum. Currently trading between $3.26 and $3.36 with next resistance near US crude is testing a key downtrend line near $96.50 today with next upside resistance near $98.00 then $100.00. Initial support appears near $94.50 then $92.00 should it falter again. UK crude remains in an uptrend consolidating between $104.00 and $106.00 although RSI suggests upward momentum losing steam. Next support on a breakdown appears near $101.50. Gasoline remains in an uptrend, currently hovering near $2.90 with next resistance near $2.95 and $3.10 and support rising toward $2.84. Natural Gas continues to drive toward a potential retest of $4.20 with next resistance after that near $4.45 as it bounced up off of $3.845 and through $4.00. RSI indicates upward momentum accelerating once again. Corn has broken down through $6.50 once again and a retest of $6.30 or $5.85 appears possible with an RSI breakdown suggesting that momentum turning increasingly negative once again. Resistance falls toward $6.65 with a descending triangle forming. Soybeans are bumping up against channel resistance near $15.00 and appear to be running out of gas. Initial support in a correction near $14.65 then $14.25. Initial resistance on a breakout appears near $15.30. Wheat has started to drift lower again with the price and RSI both breaking uptrend support lines. A retest of support in the $6.40 to $6.55 area appears possible in the near term with initial resistance near $6.95. FX USDCAD continues to struggle with $1.0300. A symmetrical triangle suggests this may be a normal pause within a wider uptrend with next potential resistance near $1.0340 and $1.0450. . EURUSD remains under distribution with the broken $1.2940 emerging as new resistance, RSI confirming momentum shift toward USD and the next key support test near $1.2730. GBPUSD has broken down through $1.5200, signalling the start of a new downleg with next support on trend near $1.5060 then $1.5000. RSI confirms momentum turning back in USD’s favour. USDNOK is backing away from the high end of a 5.70-5.90 trading channel back toward the middle. USDSEK continues to climb bumping up against 6.70 resistance followed by 6.80. Initial support in a correction near 6.58 then 6.48. USDZAR remains in an uptrend but could be due for a correction. It has broken through 9.50 and above a wedge resistance line in what could be a throwover peak. Looks vulnerable to a retest of 9.30 to start with RSI overbought again. CMC Markets is an execution only service provider. The material on this site (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.