THE TAKEAWAY: The US Dollar has stalled at technical support while the SP 500 is attempting to build downward momentum after showing a bearish reversal signal.
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US DOLLAR TECHNICAL ANALYSIS – Prices are testing support in the 10790-803 area, marked by the 38.2% Fibonacci retracement and the June 24 swing high, with a break below that eyeing the 50% level at 10739. Near-term resistance is at 10882, the 23.6% level.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at 1687.40, the May 22 swing high, hinting a move lower is ahead. Confirmation of reversal requires a daily close below rising trend line support set from late June, now at 1678.30. In this scenario, the next level of support lines up at 1655.40, the 23.6% Fibonacci retracement. Alternatively, a break above 1687.40 exposes the 100% Fib expansion 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 1297.75, the 38.2% Fibonacci retracement, hinting a move lower is ahead. Near-term rising channel support is at 1260.04, a barrier reinforced by the 23.6% retracement at 1252.80. A break below that aims for Fib expansion support at 1228.00. Alternatively, a move above resistance sees the next upside boundary at 1334.08.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick pattern, hinting a move lower is ahead. Near-term support is at 103.93, the 23.6% Fibonacci retracement, with a break beneath that targeting the 38.2% level at 101.78. The bearish candle setup would be invalidated on a close above 107.41, the July 11 high.
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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