US Dollar, S&P 500 Threaten to Overturn Multi-Month Rising Trends

DailyFX

THE TAKEAWAY: Recoveries in the US Dollar and the S&P 500 proved short-lived as expected, with prices now on the verge of breaking below critical multi-month support levels.

Capitalize on Shifts in Market Mood with the DailyFX Speculative Sentiment Index.

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.

View gallery

.
US_Dollar_SP_500_Threaten_to_Overturn_Multi-Month_Rising_Trends_body_Picture_5.png, US Dollar, S&P 500 Threaten to Overturn Multi-Month Rising Trends

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 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.

View gallery

.
US_Dollar_SP_500_Threaten_to_Overturn_Multi-Month_Rising_Trends_body_Picture_6.png, US Dollar, S&P 500 Threaten to Overturn Multi-Month Rising Trends

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.

View gallery

.
US_Dollar_SP_500_Threaten_to_Overturn_Multi-Month_Rising_Trends_body_Picture_7.png, US Dollar, S&P 500 Threaten to Overturn Multi-Month Rising Trends

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.

View gallery

.
US_Dollar_SP_500_Threaten_to_Overturn_Multi-Month_Rising_Trends_body_Picture_8.png, US Dollar, S&P 500 Threaten to Overturn Multi-Month Rising Trends

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

To be added to Ilya's e-mail distribution list, please CLICK HERE

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

View Comments