Crude Oil Resumes Recovery, SPX 500 Turns Lower as Expected

2015-05-01 06:09:00 Ilya Spivak

Talking Points:

US Dollar Snaps Six-Day Losing Streak, Hints at Bounce Ahead
S&P 500 Turns Downward as Expected, Sinks to Two-Week Low
Gold Revisits Range Support, Crude Oil Prices Resume Recovery

Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **

US DOLLAR TECHNICAL ANALYSIS – Prices snapped a six-day losing streak, forming a bullish Piercing Line candle pattern and hinting at a rebound ahead. A daily close above the 100% Fibonacci expansion at 11809 exposes the 76.4% level at 11864. Alternatively, a move below the 123.6% Fib at 11754 opens the door for a challenge of the 138.2% expansion at 11719.

Daily Chart - Created Using FXCM Marketscope

** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.

S&P 500 TECHNICAL ANALYSIS – Prices declined as expected after putting in a Bearish Engulfing candlestick pattern, hinting a double top is forming at 2119.40 (February 25 high). A break below the 50% Fibonacci retracement at 2083.50 exposes the 61.8% level at 2073.50. Alternatively, a move above the 38.2% Fib at 2093.50 targets trend line resistance at 2108.10.

Daily Chart - Created Using FXCM Marketscope

GOLD TECHNICAL ANALYSIS – Prices are testing support at 1178.38 marked by the March 31 low once again. A break below this barrier on a daily closing basis exposes the 38.2% Fibonacci expansion at 1161.16. Alternatively, a move above the April 28 high at 1215.00 targets the April 6 top at 1224.15.

Daily Chart - Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS – Prices pushed higher anew, with buyers now aiming for the 38.2% Fibonacci expansion at 68.91. A break above that on a daily closing basis exposes the 50% level at 71.24. Alternatively, a move below the 23.6% Fib at 66.03 targets the 14.6% expansion at 64.25.