THE TAKEAWAY: The US Dollar is testing above technical resistance while the downward reversal in the S&P 500 appears to be gathering momentum.
US DOLLAR TECHNICAL ANALYSIS– Prices are testing above resistance at 10487, the 14.6% Fibonacci expansion, with a confirmed breach upward on a daily closing basis exposing the 23.6% level at 10547. Falling channel resistance-turned-support is at 10451, with a move beneath that eyeing the 23.6% Fib retracement at 10420.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices broke lower as expected after carving out a bearish Rising Wedge chart pattern. The index is now retesting resistance in the 1552.40-54.50 are marked by a broken rising channel bottom and the 23.6% Fibonacci retracement. A break above that aims for the 14.6% level at 1560.50. Near-term support is at 1539.20, the 38.2% Fib.
8hr Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices rebounded as expected after putting in a Hammer candlestick. The bulls are now testing the 23.6% Fibonacci expansion at 1583.37. A break above that aims for trend line support-turned-resistance at 1602.41. Near-term support is at 1562.58, the 38.2% level.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices broke support at 94.35, the 23.6% Fibonacci retracement, exposing the 38.2% level at 91.96. A further push below that aims for the 50% mark at 90.03. The 94.35 mark has been recast as near-term resistance, with a turn back above that eyeing a falling trend line at 97.55.
Daily Chart - Created Using FXCM Marketscope 2.0
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--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
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