THE TAKEAWAY: The US Dollar is testing above technical resistance while the downward reversal in the SP 500 appears to be gathering momentum.
US DOLLAR TECHNICAL ANALYSIS– Prices are testing above resistance at 10487, the 14.6% Fibonacci expansion, with a confirmed breach upward on a daily closing basis exposing the 23.6% level at 10547. Falling channel resistance-turned-support is at 10451, with a move beneath that eyeing the 23.6% Fib retracement at 10420.
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. The index is now retesting resistance in the 1552.40-54.50 are marked by a broken rising channel bottom and the 23.6% Fibonacci retracement. A break above that aims for the 14.6% level at 1560.50. Near-term support is at 1539.20, the 38.2% Fib.
8hr Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices rebounded as expected after putting in a Hammer candlestick. The bulls are now testing the 23.6% Fibonacci expansion at 1583.37. A break above that aims for trend line support-turned-resistance at 1602.41. Near-term support is at 1562.58, the 38.2% level.
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 97.55.
Daily Chart – Created Using FXCM Marketscope 2.0
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— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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