THE TAKEAWAY: The US Dollar has descended to test another level of chart support while the SP 500 rally has paused for a breather below the 1700.00 figure.
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US DOLLAR TECHNICAL ANALYSIS – Prices recovered to test falling trend line resistance set from the July 8 high (10800), completing a bullish Morning Star candlestick pattern. A break higher initially targets the 23.6% Fibonacci retracement at 10867. Near-term support is at 10740, the July 23 swing low.
Daily Chart – Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM USDollar Index and the Mirror Trader USD basket are not the same product.
SP 500 TECHNICAL ANALYSIS – Prices pulled back from the 1700 figure to retest resistance-turned-support at 1687.40, the May 22 swing high.A reversal back below this barrier exposes the 76.4% Fibonacci expansion at 1675.10. Alternatively, a reversal above 1700 aims for the 100% level at 1710.90.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern below resistance at the top of a rising channel set from late June (1361.55), hinting a move lower is ahead. Channel bottom support is now at 1293.56, with a break beneath that initially targeting the 23.6% Fibonacci expansion at 1273.98.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices turned lower as expected, completing a bearish Evening Star candlestick pattern. Initial support is at 105.06, with a break below that targeting the 38.2% level at 102.70. Near-term resistance is at 108.89, the July 19 high.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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