Talking Points:
- US Dollar Aims to Extend Gains After Resistance Break
- S&P 500 Attempts to Carve Out Top Below 2000 Level
- Crude Oil Finds Support, Looks to Retest Above $102
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices continue to push higher having reversed upward as expected after producing a Bullish Engulfing candle pattern. Sellers now aim to challenge the 50% Fibonacci retracement at 10452, with a break above that on a daily closing basis exposing the 61.8% level at 10743. Alternatively, a move back below the 38.2% Fib at 10431 targets trend line support at 10406, followed by a long-standing triple bottom in the 10354-75 area.
Daily Chart - Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices are attempting to edge lower after putting in a bearish Evening Star candlestick pattern at the top of a rising channel set from mid-April. A break below the 14.6% Fibonacci retracement at 1960.10 on a daily closing basis exposes 1944.20-52.80 area, marked by the channel floor and the 23.6% level. Near-term resistance is at 1985.90, the July 3 high, followed by the underside of a previously broken trend line at 1998.90.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices turned lower anew as expected. Sellers are aiming to test support at 1287.13, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1269.22. Alternatively, a reversal above the 23.6% Fib at 1309.28 targets rising trend line support-turned-resistance at 1334.11.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices rebounded from rising channel support set from mid-March, taking out the 23.6% Fibonacci retracement at 101.03. Buyers now aim to challenge the 38.2% level at 102.29, with a break above that exposing the 50% Fib at 103.32. Alternatively, a move back below 101.03 eyes the channel bottom at 100.09.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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