THE TAKEAWAY: The US Dollar is aiming higher after taking out technical resistance while the SP 500 is digesting recent losses above support near the 1550 level.
US DOLLAR TECHNICAL ANALYSIS– Prices bounced from support at 10420, the 23.6% Fibonacci retracement, taking out falling trend line resistance to expose the 14.6% Fib expansion at 10509. A further break above that exposes the 23.6% expansion at 10569. The trend line – now at 10448 – has been recast as near-term support, with a move below that eyeing 10420 anew.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices broke lower as expected after carving out a bearish Rising Wedge chart pattern below resistance at 1576.10 the index’s record high. The index is now hovering above support at 1552.40, marked by the 23.6% Fibonacci retracement and a rising channel bottom. A break below that aims for the 38.2% level at 1539.20. The Wedge bottom, now at 1570.30, has been recast as near-term resistance.
8hr Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are testing support at 1545.78, the 50% Fibonacci expansion, with a Hammer candlestick hinting a bounce may be ahead. Near-term resistance is at 1562.58, the 38.2% level, with a break above that targeting the 23.6% Fib at 1583.37. Alternatively, a drop below support aims for the 61.8% expansion at 1528.98.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices broke support at 94.35, the 23.6% Fibonacci retracement, exposing the 38.2% level at 91.96. A further push below that aims for the 50% mark at 90.03. The 94.35 mark has been recast as near-term resistance, with a turn back above that eyeing a falling trend line at 97.54.
Daily Chart – Created Using FXCM Marketscope 2.0
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— 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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