THE TAKEAWAY: US Dollar price action remains muted as prices linger at a familiar range top. SPX 500 positioning hints renewed selling pressure may be close at hand.
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US DOLLAR TECHNICAL ANALYSIS – Prices put in a Spinning Top candlestick below resistance at 10760, the August 13 high, hinting a move lower may be ahead. Range support is at 10646, with a break below that targeting the bottom of a falling channel set from early July (now at 10575). A reversal above 10760 aims for the channel top at 10797.
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 put in a Bearish Engulfing candlestick pattern below resistance at 1669.80, the 23.6% Fibonacci expansion, hinting a move lower is ahead. Initial support is at 1652.10, the 38.2% Fib retracement, with a break below that eyeing the 50% mark at 1634.30. Alternatively, a reversal above 1669.80 targets the 1687.40-1691.80 area, marked by the May 22 high and the 38.2% expansion.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices overturned bearish reversal cues noted last week, pushing higher to take out resistance at the 76.4% Fibonacci expansion (1400.72). The bulls now aim to challenge the top of a rising channel at 1430.85, followed by the 100% level at 1440.23. The 1400.72 mark has been recast as near-term support, with a reversal back beneath that eyeing the channel bottom at 1381.40.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices are tracing out a consolidation Triangle chart pattern, a setup typically indicative of consolidation preceding overall trend resumption (which favors the upside in this case). Resistance at the Triangle top is reinforced by the 38.2% Fibonacci expansion at 108.40, with a break above that targeting the 50% level at 110.32. Triangle support is now at 103.78. A reversal beneath that eyes a rising trend line at 100.58.
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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