US Dollar Poised to Take Aim at May High as S&P 500 Sinks

2013-06-24 12:03:00 Ilya Spivak, Head Strategist, APAC

THE TAKEAWAY: The US Dollar continues to push higher, with prices on track to challenge the May swing high, while the S&P 500 continues to push lower after breaching support.

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US DOLLAR TECHNICAL ANALYSIS– Prices found interim support above a rising trend line set from late February and launched a sharp recovery, with the bulls now challenging the 76.4% Fibonacci retracement at 10781. A further push higher targets May 29 swing high at 10877. The 61.8% Fib at 10721 is acting as near-term support, with a reversal back beneath that eyeing the 50% retracement at 10673.

Forex_US_Dollar_Poised_to_Take_Aim_at_May_High_as_SP_500_Sinks_body_Picture_5.png, US Dollar Poised to Take Aim at May High as S&P 500 Sinks

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices dropped through a support cluster marked by rising trend lines set from mid-November 2012 and February of this year, with sellers now testing the 76.4% Fibonacci expansion at 1585.80. A further push beneath that aims for the 100% level at 1564.60. Alternatively, a recovery above the 1600 figure sees trend line support-turned-resistance at 1608.90.

Forex_US_Dollar_Poised_to_Take_Aim_at_May_High_as_SP_500_Sinks_body_Picture_6.png, US Dollar Poised to Take Aim at May High as S&P 500 Sinks

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices dove sharply lower, with sellers now testing the 100% Fibonacci expansion at 1273.77. A break beneath that exposes the 123.6% level at 1238.38. Near-term resistance is at 1309.16, the 76.4% Fib, followed by the 61.8% expansion at 1331.05.

Forex_US_Dollar_Poised_to_Take_Aim_at_May_High_as_SP_500_Sinks_body_Picture_7.png, US Dollar Poised to Take Aim at May High as S&P 500 Sinks

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS– Prices are testing support in the 93.11-55 area, marked by the 76.4% Fibonacci retracement and a rising trend line set from mid-April. A break beneath that exposes an alternative upward-sloping barrier set from the May 1 low, now at the 92.00 figure, followed by the June 3 bottom at 91.23. Near-term resistance is at 94.27, the 61.8% Fib.