Talking Points
- US Dollar Testing Key Support Marked by April Swing Bottom
- SP 500 Aims to Extend Gains After Clearing 61.8% Fib Level
- Gold Prices Meet Resistance After Producing Upward Breakout
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US DOLLAR TECHNICAL ANALYSIS – Prices edged past support at 10413, the 38.2% Fibonacci expansion, to challenge the April low at 10391. A break below that initially targets the 50% level at 10371. Alternatively, breaking back above 10413 aims for the 10465-69 area (marked by the 23.6% expansion and the June 13 low).
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 recovered as expected after showing a Spinning Top candlestick at support marked by a rising trend line set from late February. A break above the 76.4% Fibonacci expansion at 1729.00 has exposed the 100% level at 1754.40. Alternatively, a reversal back below 1729.00 eyes the 61.8% Fib at 1713.30.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices broke higher as expected after putting in a bullish Morning Star candlestick pattern. Resistance is now at 1321.09, the 38.2% Fibonacci retracement, with a break above that targeting the 50% level at 1342.57. Near-term support is at 1294.51, the 23.6% Fib, a barrier reinforced by a falling trend line set from late August.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices edged below support at 100.88, a horizontal pivot dating back to April 2012, opening the door for a move to the 100.00 figure and 98.99 (September 2012 top). Alternatively, a reversal above 100.88 targets the top of a falling channel set from the August 28 swing high (now at 102.79).
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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