THE TAKEAWAY: The US Dollar was swiftly rejected at trend line resistance following a recovery attempt. The SP 500 continues to look for direction near the 1700 figure.
Don’t have access the Dow Jones FXCM US Dollar Index? Try the USD basket via Mirror Trader as an alternative. **
US DOLLAR TECHNICAL ANALYSIS – Prices overturned a bullish Morning Star candlestick pattern identified yesterday, recoiling from falling trend line resistance set from the July 8 swing high to challenge support at 10739, the 50% Fibonacci retracement. A break beneath this boundary exposes the 61.8% level at 10675. Trend line resistance is now at 10793, with added reinforcement from the 38.2% Fib at 10803.
Daily Chart – Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM USDollar Index and the Mirror Trader USD basket are not the same product.
SP 500 TECHNICAL ANALYSIS – Prices pulled back from the 1700 figure to retest resistance-turned-support at 1687.40, the May 22 swing high.A reversal back below this barrier exposes the 76.4% Fibonacci expansion at 1675.10. Alternatively, a reversal above 1700 aims for the 100% level at 1710.90.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern below resistance at the top of a rising channel set from late June (now at 1366.68), hinting a move lower is ahead. Channel bottom support is currently at 1299.97, with a break beneath that initially targeting the 23.6% Fibonacci expansion at 1273.98.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices turned lower as expected, completing a bearish Evening Star candlestick pattern. Initial support is at 105.06, the 23.6% Fibonacci retracement, with a break below that targeting the 38.2% level at 102.70. Near-term resistance is at 108.89, the July 19 high.
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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