THE TAKEAWAY: Recoveries in the US Dollar and the SP 500 proved short-lived as expected, with prices now on the verge of breaking below critical multi-month support levels.
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US DOLLAR TECHNICAL ANALYSIS– Prices moved lower as expected after putting in a Bearish Engulfing candlestick pattern. Prices are now testing below key support at a rising trend line set from December 2012, a barrier reinforced by the 38.2% Fibonacci retracement at 10510. A break below the latter level targets the 50% level at 10397. Near-term resistance is at 10576, the March 11 high, with a turn back above that eyeing the 23.6% Fib at 10650.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices are testing through support at 1605.90, the intersection of a rising trend line set from November 2012 and the 23.6% Fibonacci retracement. A break below that exposes a falling channel bottom at 1585.60. Channel resistance is at 1635.60.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are testing rising trend line support set from mid-April – now at – with a break lower aiming for recent swing lows in the 1321.59-38.06 area. Rising channel support-turned-resistance is at 1408.78. This barrier is reinforced by the 38.2% Fibonacci retracement at 1424.23, with a break above the latter level targeting the 50% Fib at 1455.94.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices continue to consolidate in a choppy range below a falling trend line set from late January. This barrier is reinforced by the 50% Fibonacci expansion at 97.09, with a break above that initially exposing the 61.8% level at 98.47. Near-term support is at the 94.00 figure, with a move beneath that eyeing the June 3 low 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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