THE TAKEAWAY: The US Dollar is testing attempting to clear the last level of chart resistance before a challenging the May swing high. The SP 500 continues to recover.
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US DOLLAR TECHNICAL ANALYSIS– Prices are testing above resistance at 10781, the 76.4% Fibonacci retracement, with a break higher on a daily closing basis exposing the May 29 swing high at 10877. Initial support is at 10721, the 61.8% level. A drop beneath that eyes the 50% Fib at 10673.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices advanced as expected after putting in a bullish Piercing Line candlestick pattern. The bulls are now retesting trend line support-turned-resistance set from late February (now at 1615.10), with a break above that exposing the 50% Fibonacci retracement at 1623.30. Near-term support is at 1608.10, the 38.2% Fib, with a turn back beneath that eyeing the 23.6% level at 1589.40.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are testing below support at 1198.80, the 150% Fibonacci expansion, to challenge the 61.8% mark at 1181.11. A break below the latter level targets the 176.4% level at 1159.22. Near-term resistance is at 1238.38, the 123.6% Fib.
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 support at a rising trend line set from mid-April. A break above the 23.6% Fibonacci expansion at 95.88 has exposed the 38.2% level at 97.87, with a further push above that targeting the 50% Fib at 99.47. Alternatively, a move back beneath 95.88 sees trend line support at 94.15.
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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