THE TAKEAWAY: US Dollar technical positioning warns a turn lower may be ahead, with testimony from Ben Bernanke and May’s FOMC minutes lining up as possible triggers.
US DOLLAR TECHNICAL ANALYSIS– Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at 10822, the 50% Fibonacci expansion, hinting a move lower is ahead. Initial support is at 10722, the 38.2% level, with a break below that targeting the 23.6% Fib at 10599. Alternatively, a reversal above resistance exposes the 61.8% expansion at 10922.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices are testing resistance at 1676.50, the 123.6% Fibonacci expansion, with a break above that targeting the 138.2% level at 1693.10. Near-term support is at 1649.60, the 100% Fib. A drop beneath that aims for the 76.4% expansion at 1622.70.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices broke above resistance in the 1375.16-77.33 area and completed a Bullish Engulfing candlestick pattern, hinting at further gains ahead. Initial resistance is at 1401.63, with a break above that targeting 1421.26. Alternatively, a reversal back beneath 1375.16 exposes 1340.31.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at the 97.00 figure, a level marked by a falling trend line set from early January and the 76.4% Fibonacci expansion, hinting a move lower is ahead. Near-term support is at 95.68, the 61.8% level, with a break below that targeting the 50% Fib at 94.62. Alternatively, a move above 97.00 aims for the 100% level at 99.14.
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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