THE TAKEAWAY: The US Dollar mounted a shallow corrective recovery but overall technical positioning continues to favor the downside scenario.
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US DOLLAR TECHNICAL ANALYSIS– Prices moved lower as expected, taking out the 14.6% Fibonacci retracement level at 10711 and exposing the 23.6% Fib at 10609. A further push beneath that eyes the 38.2% level at 10443. The 10711 mark has been recast as near-term resistance, with a break back above that eyeing the underside of a recently broken rising channel at 10817.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices are testing support at 1625.60, the 14.6% Fibonacci retracement. A break below that exposes the 1600 figure and the 23.6% level at 1587.50. Near-term trend line resistance is at 1655.20, with a move above that eyeing the May 22 high at 1687.40.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern, hinting a turn lower may be ahead. Near-term support is at 1386.51, the 23.6% Fibonacci retracement. A break below that targets the 38.2% level at 1364.62. Initial resistance is at 1421.90, the May 31 swing high.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices declined as expected after putting in a bearish Dark Cloud Cover candlestick pattern. A bounce from falling channel support targets the formation’s top at 94.68, with a break above that aiming for a falling trend line set from September 2012, now at 96.75. Channel support is at 90.81.
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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