THE TAKEAWAY: US Dollar technical positioning hints prices are vulnerable to deeper losses. Meanwhile, the SP 500 has edged past the first layer of key chart support.
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US DOLLAR TECHNICAL ANALYSIS– Prices moved lower as expected, with prices taking out rising channel support after completing a Bearish Engulfing candlestick pattern. Sellers now aim to challenge the 38.2% Fibonacci retracement level at 10694, with a move beneath that exposing the 50% Fib at 10638. Channel support-turned-resistance is now at 10804.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices broke support at 1637.00, the 14.6% Fibonacci retracement, exposing the 23.6% Fib at 1605.90. A further push below that eyes the 38.2% Fib at 1555.50. Near-term resistance is at the May 22 high (1687.40), a barrier reinforced by the underside of a broken rising trend line set from mid-April (now at 1682.00).
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 appear to have completed a Head and Shoulders top chart formation. Sellers initially eye the May 1 low at 90.09 from here, but the HS setup implies a measured downside objective at 88.58. Neckline support-turned-resistance is now at 92.71, with a move back above that eyeing the May 28 highat 95.89.
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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