THE TAKEAWAY: The US Dollar dove lower to overturn the rising trend from mid-June while the SP 500 pushed higher, setting its sights on the May swing high.
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US DOLLAR TECHNICAL ANALYSIS – Prices turned lower as expected, with sellers testing below support at 10803, the 38.2% Fibonacci retracement. A break downward on a daily closing basis exposes the 50% level at 10739. Near-term resistance is at 10882, the 23.6% level, with a move back above that eyeing the July 8 swing high at 11009.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices moved higher as expected after putting in a bullish Piercing Line candlestick pattern. The bulls are now poised to challenge the 76.4% Fibonacci expansion at 1675.10, with a break above that targeting the May 22 high at 1687.40 and the 100% level at 1710.90. Near-term support is at 1652.90, the 61.8% Fib.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are moving higher after putting in a Bullish Engulfing candlestick pattern, taking out resistance at the 23.6% Fibonacci retracement (1252.80) to expose the 38.2% level at 1297.75. A further push above that aims for the 50% Fib at 1334.08. The 1252.80 mark has been recast as near-term support.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices advanced as expected after putting in a bullish Piercing Line candlestick pattern above trend line support. The bulls are now testing above resistance at 106.26, the 100% Fibonacci retracement, with a break higher targeting the 123.6% level at 109.46. Near-term support is at 103.35, the 78.6% Fib.
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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