US Dollar Attempting Recovery as SPX 500 Keeps Pushing Higher
Talking Points
US Dollar Finds Support, Attempts to Stage Cautious Recovery
S&P 500 Upward Push Continues to Set Another Record High
Crude Oil Begins to Recover from Chart Support as Expected
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Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices are testing above resistance in the in the 10416-24 region, the site of April’s shelf support and the 38.2%Fibonacci expansion. A break higher on a daily closing basis exposes the 23.6% level at 10468. Near-term support is at 10374, the 50% Fib, with a reversal back beneath that targeting the 10323-31 area (marked by the June 2012 swing high and the 61.8% expansion).
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.
S&P 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. A break above resistance at 1754.40, the 100% Fibonacci expansion, has exposed the 123.6% level at 1779.80. Alternatively, dropping back below 1754.40 sees the first layer of support at 1729.00, the 76.4% Fib.
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 1364.06, 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 rose as expected after putting in a bullish Morning Star candlestick pattern at the bottom of a falling channel set from late August. Near-term resistance is at 99.77, the 23.6% Fibonacci retracement, with a break above that targeting the channel top at 101.32. Channel bottom support is now at 96.07.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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