Crude Oil May Be Resuming Recovery, SPX 500 Bounces from Support
- US Dollar Still Breaks Range, Sinks to Lowest in Three Weeks
- S&P 500 Launches Sharp Recovery from Trend Line Support
- Crude Oil Rebound from Mid-January Low May Be Resuming
US DOLLAR TECHNICAL ANALYSIS – Prices declined to a three-week low after breaking range support. A daily close below the 61.8% Fibonacci retracement at 11790 exposes the 76.4% level at 11731. Alternatively, a rebound back above the 50% Fib at 11839clears the way for a test of the 38.2% retracement at 11887.
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices launched a swift recovery after testing rising trend line support set from late-March lows. From here, a break above trend line resistance at 2110.80 exposes the 50% Fibonacci expansion at 2119.10. Alternatively, a move below the 23.6% Fib at 2093.50 targets the 2077.20-79.30 area (trend line, 61.8% Fib retracement).
GOLD TECHNICAL ANALYSIS – Prices narrowly edged above falling channel resistance, warning that the down move from mid-May highs may be unraveling. A break of trend line resistance at 1201.51 exposes the May 18 high at 1232.30. Alternatively, turn below channel resistance-turned-support at 1181.01 targets the 38.2% Fibonacci expansion at 1169.31.
CRUDE OIL TECHNICAL ANALYSIS – Prices may be resuming the recovery launched from mid-January lows after completing a Flag continuation pattern. Near-term resistance is at 66.69, the 23.6% Fibonacci expansion, with a break above that exposing the 38.2% level at 70.25. Alternatively, a move below trend line support at 62.62 targets the 38.2% Fib retracement at 60.27.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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