THE TAKEAWAY: The US Dollar found fuel for another push higher after two days of indecision while the SP 500 continued to recover, reclaiming the 1600 figure.
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US DOLLAR TECHNICAL ANALYSIS– Prices are pushing higher eyeing resistance at 10781, the 76.4% Fibonacci retracement. A break higher exposes the May 29 swing high at 10877. Initial support is at 10721, the 61.8% level, with a drop beneath that eyeing the 50% Fib at 10673.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices advanced as expected after putting in a bullish Piercing Line candlestick pattern. A break above the 23.6% Fibonacci retracement 1589.40 has exposed the next upside barrier in the 1608.10-13.10 area, marked by a rising trend line and the 38.2% level. Pushing above this exposes the 50% Fib at 1623.30. The 1589.40 mark has been recast as near-term support.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices broke support at 1238.38, the 123.6% Fibonacci expansion, exposing the 138.2% level at 1216.49. A further push beneath that eyes the 150% Fib at 1198.80. The 1238.38 mark has been recast as near-term resistance, with a reversal back above that targeting the 100% expansion at 1273.77.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices put in a bullish Piercing Line candlestick pattern above support at a rising trend line set from mid-April, hinting a rebound may be ahead. Initial resistance is at 95.88, the 23.6% Fibonacci expansion, with a break above that exposing the 38.2% level at 97.87. Alternatively, move beneath trend line support (now at 93.99) exposes an upward-sloping barrier set from the May 1 low at 92.14, followed by the June 3 bottom at 91.23.
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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