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US Dollar Losses Continue to Mount as S&P 500 Tests July Highs

US Dollar Losses Continue to Mount as S&P 500 Tests July Highs

Ilya Spivak, Head Strategist, APAC

THE TAKEAWAY: The US Dollar remains under pressure as the S&P 500 tests July’s swing high, with a break higher opening the door for a challenge of the 1400 figure.

S&P 500 – Prices are testing resistance at 1380.60, the July 5 high. A break higher exposes 1392.10, a barrier reinforced by a Rising Wedge top now at 1395.30. Near-term support lines up at 1363.90. A reversal below this barrier targets the Wedge bottom at 1347.80.

US_Dollar_Losses_Continue_to_Mount_as_SP_500_Tests_July_Highs_body_Picture_5.png, US Dollar Losses Continue to Mount as S&P 500 Tests July Highs

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL Prices took out resistance at 91.84, the 50% Fibonacci retracement level, to expose the 61.8% barrier at 95.29. A break above this boundary targets the 76.4% Fib at 99.55 and the psychologically significant 100.00 figure. The 91.84 level has been recast as near-term support, with a drop back below that targeting the 38.2% retracement at 88.40.

US_Dollar_Losses_Continue_to_Mount_as_SP_500_Tests_July_Highs_body_Picture_6.png, US Dollar Losses Continue to Mount as S&P 500 Tests July Highs

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD Prices continue to consolidate below resistance at 1588.90. A break higher exposes falling trend line resistance now at 1608.14. Near-term support lines up at 1570.83, with breach below that targeting 1558.77 and the 1522.50-32.45 area.

US_Dollar_Losses_Continue_to_Mount_as_SP_500_Tests_July_Highs_body_Picture_7.png, US Dollar Losses Continue to Mount as S&P 500 Tests July Highs

Daily Chart - Created Using FXCM Marketscope 2.0

US DOLLAR Prices took out support at 10070, the 50% Fibonacci retracement, exposing the next downside barrier in the 10010-32 area. A break below this barrier targets multi-month rising trend line support at 9958. Overall, the completion of a bearish Flag chart pattern earlier this week implies a measured downside objective at 9935.

US_Dollar_Losses_Continue_to_Mount_as_SP_500_Tests_July_Highs_body_Picture_8.png, US Dollar Losses Continue to Mount as S&P 500 Tests July Highs

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.

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