THE TAKEAWAY: The US Dollar took out chart resistance to hint at gains ahead even as markets brace for heavy-duty event risk by way of the FOMC monetary policy announcement.
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US DOLLAR TECHNICAL ANALYSIS – Prices broke above resistance the top of a Flag chart pattern, hinting at bullish continuation ahead. Initial resistance is at 10820, the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 10899. Near-term support is at 10693, the July 29 swing 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 are drifting sideways having pulled back from the 1700 figure to retest resistance-turned-support at 1687.40, the May 22 swing high.A reversal back below this barrier exposes the 76.4% Fibonacci expansion at 1675.10. Alternatively, a push above 1700 aims for the 100% level at 1710.90.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern below resistance at the top of a rising channel set from late June, hinting a move lower is ahead. Channel bottom support is now at 1317.10, with a break beneath that initially targeting the 23.6% Fibonacci expansion at 1273.98. Near-term resistance is at 1347.57, the July 24 high, followed by the channel top at 13847.51.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices turned lower as expected. Sellers are now testing support at 102.70, the 38.2% Fibonacci retracement, with a break lower targeting the 50% level at 100.79. Near-term resistance is at 105.06, the 23.6% Fib.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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