THE TAKEAWAY: The S&P 500 is back on the offensive with prices pushing through near-term resistance while the US Dollar has slumped back to last week’s range support.
S&P 500 – Prices are testing above support-turned-resistance at a falling trend line set from mid-April, with a break higher exposing barriers at 1357.40 and 1392.10. The trend line is now at 1330.50 and would be recast as support in a breakout scenario. The 1265.30-1292.90 remains as the first significant hurdle to the downside in the meantime.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices are consolidating between the June 7 high at 87.00 and the 14.6% Fibonacci expansion at 83.30. A break above resistance exposes the 90.00 figure. Alternatively, a push through support targets the 23.6% Fib at 81.07.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices are probing above resistance at 1599.17, the 50% Fibonacci retracement, after carving out a Hammer candlestick above support at 1582.10 marked by the 38.2% level. A break higher sees the next significant barrier at 1616.23, the 61.8% Fib.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices are once again testing support in the 10134-43 area, with a break lower opening the door for a challenge of the 38.2% Fibonacci expansion at 10066. Near-term resistance lines up at 10220, the 61.8% Fib.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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