News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
US Dollar Approaches Key Support, S&P 500 Positioning Favors Losses

US Dollar Approaches Key Support, S&P 500 Positioning Favors Losses

Ilya Spivak, Head Strategist, APAC

THE TAKEAWAY: The US Dollar is approaching key support while S&P 500 positioning continues to favor losses despite the recent upswing, hinting the greenback may rebound.

S&P 500 – Prices are retesting support-turned-resistance at the bottom of a Rising Wedge chart formation broken last week, now at 1359.70. The barrier is reinforced by a familiar horizontal support-turned-resistance level at 1363.90. Friday’s rebound appears corrective thus far, with overall positioning still arguing for a bearish scenario. Initial support lines up in the 1334.40-41.90 area, with a break below that exposing swing bottoms at 1308.90 and 1290.10.

US_Dollar_Approaches_Key_Support_SP_500_Positioning_Favors_Losses_body_Picture_5.png, US Dollar Approaches Key Support, S&P 500 Positioning Favors Losses

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL Prices continue to trade sideways above support at 84.14, the 23.6% Fibonacci retracement. Near-term resistance is at 88.40, the 38.2% level, with a break above that exposing the 90.00 figure and the 50% Fib at 91.84. Alternatively, a breach of support targets the 81.19-52 area marked by the June 4 low and the 14.6% retracement.

US_Dollar_Approaches_Key_Support_SP_500_Positioning_Favors_Losses_body_Picture_6.png, US Dollar Approaches Key Support, S&P 500 Positioning Favors Losses

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD Prices broke back above 1575.81, the 38.2%Fibonacci expansion, exposing the 23.6% level sitting squarely at the 1600/oz figure once again. A falling trend line set from late March, now at 1612.47, compounds resistance. A break above the latter boundary initially exposes the July 3 high at 1624.81. The 1575.81 level has been recast as near-term support, with a turn back below that targeting the 50% Fib at 1555.83.

US_Dollar_Approaches_Key_Support_SP_500_Positioning_Favors_Losses_body_Picture_7.png, US Dollar Approaches Key Support, S&P 500 Positioning Favors Losses

Daily Chart - Created Using FXCM Marketscope 2.0

US DOLLARPrices took out support at 10139, the 38.2% Fibonacci retracement, to challenge the bottom of a rising channel set from the June 20 low (now at 10085). A break below this boundary would neutralize the near-term bullish bias and expose familiar support in the 10032-67 area. The 10139 level has been recast as near-term resistance.

US_Dollar_Approaches_Key_Support_SP_500_Positioning_Favors_Losses_body_Picture_8.png, US Dollar Approaches Key Support, S&P 500 Positioning Favors Losses

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES