Talking Points:
- US Dollar Rally Pauses After Prices Probe Monthly Highs
- S&P 500 Accelerates Lower After Brief Corrective Bounce
- Crude Oil, Gold Prices Digesting After Sharp Moves Lower
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices moved upward as expected after producing a bullish Morning Star candlestick pattern. A daily close above the 61.8% Fibonacci expansion at 11985 exposes the 76.4% level at 12044. Alternatively, a turn below the 50% Fib at 11937 clears the way for a test 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 accelerated downward anew after a brief correction higher. A break below the 2040.10-41.30 area (March 11 low, 61.8% Fibonacci expansion) exposes the 76.4% level at 2030.50. Alternatively, a move above the 50% Fib at 2050.10 targets the 38.2% expansion at 2058.90.
GOLD TECHNICAL ANALYSIS – Prices are consolidating losses after accelerated downward to hit a four-month low. 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 continue to digest after producing 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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