Talking Points
- US Dollar Drops for Fourth Day, Issues Lowest Close in Two Weeks
- SP 500 Edging to Key Trend Line Support Set from November 2012
- Gold Recovers Above $1300/oz Figure But Overall Setup Still Bearish
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Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices broke support at 10500, the 23.6% Fibonacci expansion, exposing the June 13 low at 10469. This barrier is reinforced by the 38.2% Fib at 10450, with a push beneath the latter threshold eyeing the 50% retracement at 10410. The 10500 mark has been recast as near-term resistance, followed by the 14.6% level at 10530.
Daily Chart – Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
SP 500 TECHNICAL ANALYSIS – Prices moved lower as expected, completing a bearish Evening Star candlestick pattern. Sellers are now testing support at 1680.30, the 38.2% Fibonacci retracement. A break below that targets 1667.70, a level marked by the 61.8% retracement and a rising trend line set from November 2012. Near-term resistance is at 1699.00, the 23.6% Fib expansion.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices rebounded from horizontal support at 1275.51 to retest a recently broken upward-sloping barrier at 1325.79. A break above that eyes 1337.32, the intersection of a falling trend line set from the August high and the 38.2% Fibonacci retracement.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices recovered from support at 100.88, a horizontal pivot dating back to April 2012. A narrow break above resistance at 103.68 hints the next stop is a test of 105.31, the intersection of the 38.2% level and the underside of a rising channel set from July. A reversal back below 103.68 aims for 100.88 anew.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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