Gold Launches Sharply Higher, SPX 500 Breaks Monthly Resistance
- US Dollar Continues to Decline, Setting New Monthly Low
- S&P 500 Breaks 1-Month Resistance, Aims to Extend Rally
- Gold Launches Sharply Higher, Crude Oil May Follow Suit
US DOLLAR TECHNICAL ANALYSIS – Prices continued to push downward following yesterday’s FOMC-inspired break of range support. A daily close below the 61.8% Fibonacci expansion at 11717 exposes the 11634-40 zone (May 14 low, 76.4% level). Alternatively, a push above the 50% Fib at 11779 clears the way for a test of the 11834-41 area (horizontal pivot, 38.2% expansion).
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices accelerated upward, clearing resistance capping gains since mid-May. From here, a break above the 61.8% Fibonacci expansion at 2130.50 exposes the 76.4% level at 2144.70. Alternatively, a move below the 50% Fib at 2119.10 targets the 38.2% expansion at 2107.70.
GOLD TECHNICAL ANALYSIS – Prices launched sharply higher, clearing range top resistance and narrowly clearing the $1200/oz figure. A break above the 61.8% Fibonacci retracement at 1205.69 exposes the 76.4% level at 1215.86. Alternatively, a move below the 50% Fib at 1197.47 targets the 38.2% retracement at 1189.26.
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 63.61 targets the 38.2% Fib retracement at 60.27.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya's analysis directly via email, please SIGN UP HERE
Contact and follow Ilya on Twitter: @IlyaSpivak
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.