THE TAKEAWAY: The US Dollar is retesting its 2-week low after a brief attempt at recovery faltered. The SP 500 has descended to interim chart support after last week’s plunge.
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US DOLLAR TECHNICAL ANALYSIS – Prices recoiled from resistance at 10744, the 38.2% Fibonacci expansion, reversing through the 23.6% level at 10708 to expose the August 8 low at 10650. A break beneath that eyes falling channel bottom support at 10611. The 10708 mark has been recast as near-term resistance.
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 pulled back as expected after putting in a Hanging Man candlestick and extended lower after clearing support at 1687.40, the May swing high. Sellers are now testing the 38.2% Fibonacci retracement at 1652.10, with a break below that targeting the 50% level 1634.40. Near-term resistance is at 1674.10, the 23.6% Fib, with a move back above that eyeing 1687.40 anew.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices continue to push higher after breaking resistance at a falling trend line set from early May. Buyers are now probing above the 61.8% Fibonacci expansion at 1376.28, with a daily close above that exposing the 76.4% level at 1400.72. Near-term support is at 1356.22, the 50% Fib. A reversal back beneath that eyes the 38.2% expansion at 1336.76.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices appear to have completed a Flag chart pattern, a setup indicative of bullish continuation. Near-term resistance is at 108.40, the 38.2% Fibonacci expansion, with a break above that aiming for the 50% level at 110.32. Flag top resistance-turned-support is now at 106.95.
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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