US Dollar Rebounds as Risky Assets Hint Double Top
MSCI WORLD STOCK INDEX – Prices have put in a Shooting Star candlestick formation ahead of resistance at $1131.35, the June swing high, hinting a move lower may be ahead. Negative RSI divergence bolsters the case for a downward scenario. That said, confirmation is required on the close of tomorrow’s candle. Initial support lines up at $1116.56, the 7/14 wick high.
US DOLLAR INDEX – Prices have stalled above support at 82.11, the 76.4% Fibonacci retracement of the 4/12-6/7 upswing. Positive RSI divergence hints that a rebound may materialize from here, with initial resistance at the 61.8% Fib level (83.37). Alternatively, continued selling sees support just above the 80.00 figure.
CRUDE OIL – Prices have turned lower having tested resistance at $79.38, the June swing top. Continued selling targets the bottom of a rising channel established since May near the $75 figure.
GOLD – Directional momentum seems to have finally returned as prices took out support marked by a rising trend line established from the swing bottom in early February and slipped below the $1170.00 figure. From here, sellers face the next downside boundary at $1151.85.
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