Talking Points:
- US Dollar Selloff Pauses After Another Big Leg Downward
- SP 500 Holds Up at Range Floor Above 1850.00 Level
- Crude Oil Reclaims Hold on $100/bbl Figure, Aims Higher
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices corrected cautiously higher after producing the largest decline in a month yesterday. Near-term resistance is at 10411, the 23.6% Fibonacci expansion, with a break back above that on a daily closing basis initially targeting the 14.6% level at 10443. Renewed downward momentum aims for 10359, the 38.2% Fib. A break below that eyes the bottom of a falling channel guiding the down trend since the beginning of the year, now at 10336.
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 rebounded as expected after putting in a Piercing Line candlestick pattern. Prices are testing the 38.2%Fibonacci expansionat 1880.30, with a break above that targeting the 50%level at 1889.60. Alternatively, a reversal below the 23.6%Fibat 1868.70 exposes the April 28 low at 1850.10.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are consolidating below resistance in the 1315.60-19.28 area, marked by the top of a descending Triangle chart formation and the 38.2% Fibonacci retracement. A break above that on daily closing basis targets the 50% level at 1330.18. The descending Triangle argues in favor of bearish continuation however (though confirmation is absent for now). Near-term support is at 1277.00, the Triangle bottom, followed by the April 24 low at 1268.40.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices turned higher to reclaim a foothold above the $100/barrel figure, taking out the 23.6% Fibonacci expansion at 100.53. The bulls now aim to challenge the 38.2% level at 101.64, with a further break above that targeting the 50% Fib at 102.54. Alternatively, a reversal back below support on a daily closing basis exposes the May 1 low at 98.73.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya’s analysis directly via email, please SIGN UP HERE
Contact and follow Ilya on Twitter: @IlyaSpivak