Gold Drops to 4-Month Low, SPX 500 Rebuilding Selling Pressure
- US Dollar Accelerating Higher en Route to June Swing High
- S&P 500 Rebuilding Downward Momentum After Correction
- Gold Drops to Four-Month Low, Crude Oil Digesting Losses
US DOLLAR TECHNICAL ANALYSIS – Prices advanced as expected after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 11985, the 61.8% Fibonacci expansion, with a break above that on a daily closing basis exposing the 76.4% level at 12044. Alternatively, a move below the 50% Fib at 11937 opens the door for a challenge of the 38.2% level at 11888.
** 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 rebuild downward momentum following a brief correction higher. A break below the 23.6% Fibonacci expansion at 2069.80 exposes the 38.2% level at 2058.90. Alternatively, a move above the July 2 high at 2087.40 targets channel floor support-turned-resistance at 2092.50.
GOLD TECHNICAL ANALYSIS – Prices accelerated downward, testing the lowest levels in four months. A daily close below the 76.4% Fibonacci expansion at 1152.47 exposes the 100% level at 1136.03. Alternatively, a move above the 61.8% Fib at 1170.86 targets the 50% expansion at 1170.86.
CRUDE OIL TECHNICAL ANALYSIS – Prices are digesting losses after issuing the largest daily decline in over seven months. A break below the 61.8% Fibonacci retracement at 54.50 exposes the 76.4% level at 50.94. Alternatively, a move back above the 50% Fib at 57.39 targets the 38.2% retracement at 60.27.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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