As inferred last week, here & here, the failure of the 92.50s to hold as support resulted in price discovery lower toward the Major structural support at 91.50s.
The market broke down through that support, as price discovery drove the market down into Dec & Oct 2012's middle cluster, 90.30s-87.90s, here, achieving a stopping point at 90s, at/near the cluster POC, 90.20s.
Market response at/near the Major structural resistance, 91.50s, (prior support) will be key in next week's auction. IF that area is defended by the sellside, then price discovery potential lower toward 88s. IF 91.50s fail to hold as resistance, then price discovery potential higher within 91.50-95 cluster as inventory is adjusted.
Graphics
- Chairman Bernanke's Inflation Record. (Zerohedge)
- Asset Class Performance, Feb & YTD. (Bespoke)
Central Banks
- Yuan Overtakes Ruble As World Payments Currency. (Bloomberg)
- "Money Is By Nature Gold...."- Karl Marx (Gold Standard Now)
- Singapore Avoids Stimulus, Currency Wars. (Bloomberg)
- Jack Lew Confirmed As Treasury Secretary. (Reuters)
Geopolitics
- P5 + 1 Eases Nuclear Demands On Iran, Offers Sanctions Relief. (RT)
- US Funding Of Syrian Rebels May Assist Formation Of Alternate Government. (RT)
- Congressional, Executive Pay Safe From Sequestration. (Bloomberg)
- Geopolitical Issue Of US Crude Oil Exports. (Platts)