Talking Points:
- US Dollar Rebound Capped at Monthly Channel Top Resistance
- SP 500 Declines as Expected But Overall Uptrend Still Intact
- Crude Oil Stalls at Trend Line, Gold Drops to 2-Month Support
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices advanced as expected after prices put in a bullish Morning Star candlestick pattern. Near-term resistance is at 11888, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 11937. Alternatively, a move below the 23.6% Fib at 11829 opens the door for a challenge of the 14.6% level at 11792.
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
SP 500 TECHNICAL ANALYSIS – Prices declined as expected after negative RSI divergence argued for ebbing upside momentum. From here, a break below trend line resistance-turned-support at 2097.60exposes the channel floor at 2086.20. Alternatively, a push above the 2127.60-37.10 area (May 19, June 18 highs) targets channel top resistance at 2155.70.
GOLD TECHNICAL ANALYSIS – Prices have slumped back to two-month support after failing to hold up above the $1200/oz figure. A break below the 1170.30-86 area (May 1 low, 50% Fibonacci expansion) exposes the 61.8% level at 1162.64. Alternatively, a move above the 38.2% Fib at 1179.07 targets the 23.6% expansion at 1189.24.
CRUDE OIL TECHNICAL ANALYSIS – Prices continue to stall at trend line support guiding the recovery from mid-January. A break below this barrier – now at 63.09 – exposes the 38.2% Fibonacci retracement at 60.27. Alternatively, a move above the 23.6% Fib expansion at 66.69 targets the 38.2% threshold at 70.25.
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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