THE TAKEAWAY: The US Dollar is aiming to set another three-year high while recent SP 500 gains continue to look corrective in the context of a larger decline.
Capitalize on Shifts in Market Mood with the DailyFX Speculative Sentiment Index.
US DOLLAR TECHNICAL ANALYSIS – Prices broke above resistance at 10946, the 100% Fibonacci expansion, opening the door for a move higher to challenge the 123.6% level at 11016. The 10946 mark has been recast as near-term support. A reversal back beneath that aims for the 10848-77 area marking the late-May swing top.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices moved higher as expected after putting in a bullish Piercing Line candlestick pattern. A move above the 61.8% Fibonacci retracement at 1638.40 has exposed support-turned-resistance at a rising trend line set from mid-November 2012, now at 1645.30. A further push above that aims for the 76.4% level at 1657.10. Alternatively, a move back beneath 1638.40 targets the 50% mark at 1623.30.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices turned lower anew, with sellers challenging support marked by the 23.6% Fibonacci expansion at 1209.88. A break beneath that initially targets the 38.2% level at 1174.32. Near-term resistance is at 1267.36, the July 2 swing high.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices advanced as expected after putting in a bullish Piercing Line candlestick pattern above trend line support. A break above the 78.6% Fibonacci expansion at 103.35 would expose the 100% level at 106.26. Near-term support is at 101.07, the 61.8% Fib, with a break beneath that eyeing the 50% expansion at 99.47.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
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