Talking Points
- US Dollar Finds Interim Chart Support After Clearing April Bottom
- SP 500 Technical Setup Continues to Warn of a Pullback Ahead
- Gold Expected to Continue Higher After Clearing Fib Resistance
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US DOLLAR TECHNICAL ANALYSIS – Prices broke support in the 10416-24 area, marked by April’s shelf support and the 38.2% Fibonacci expansion, to expose the 50% level at 10374. A further push beneath that eyes the 10323-31 region, defined by the June 1 2012 swing high and the 61.8% Fib. Alternatively, a reversal back above 10424 targets the 23.6% expansion at 10468.
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 recovered as expected after showing a Spinning Top candlestick at support marked by a rising trend line set from late February. Buyers are now testing resistance at 1754.40, the 100% Fibonacci expansion, with a Harami candlestick pattern warning a pullback may be ahead. Near-term support is at 1729.00, the 76.4% Fib.Alternatively, a push above resistance aims for the 123.6% level at 1779.80.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices broke higher as expected after putting in a bullish Morning Star candlestick pattern. Resistance is now at 1634.06, the 61.8% Fibonacci retracement, with a break above that targeting the 76.4% level at 1390.64. Near-term support is at 1342.57, the 50% Fib. A reversal back beneath that eyes the 38.2% Fib at 1321.09.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices continued to move lower as expected, taking out support at the 38.2% Fibonacci retracement (98.86) to expose the bottom of a channel set from late August (now at 96.57). A break below that aims for the 50% Fib at 94.73. A Doji candlestick warns of indecision however and hints a bounce may be ahead, with a reversal back above 98.86 eying the September 14 2012 swing top at 100.40.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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