Talking Points:
US Dollar Pulls Back but the Uptrend Looks to be Intact
S&P 500 Sets Yet Another Record High as Rally Resumes
Gold Stalling After Breakdown, Crude Oil Finds Support
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices corrected lower but overall positioning continues to favor strength after prices set a double bottom and cleared channel resistance guiding the down trend from January. The index is testing resistance-turned-support in the 10474-95 area, with a reversal back below that opening the door for a retest of the channel top at 10427. Near-term resistance is at 10531, the May 28 high. A move above that aims for the 10589-619 region.
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 broke resistance at 1908.40, the 50%Fibonacci expansion, exposing the 61.8% level at 1919.40. A further push beyond that targets the 76.4% Fib at 1933.00.Alternatively, a reversal back below1908.40 clears the way for a descent to the 1897.40-1899.10 area, marked by the 38.2% expansion and the April 4 high.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices turned lower as expected, confirming a descending Triangle chart formation. Sellers now aim to challenge support at 1243.24, the 76.4% Fibonacci expansion. A break below this boundary exposes the 100% level at 1216.11. Resistance is at 1260.03, the 61.8% Fib, with a reversal back above that clearing the way for an advance into the 1273.59-77.00 area marked by the 50% retracement and the Triangle bottom.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices recoiled from trend line resistance set from early March to test support at 103.02, marked by an upward-sloping barrier set from early May and the 23.6% Fibonacci expansion. A break downward exposes the 38.2% level at 102.11. Trend line resistance is now at 104.46.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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US Dollar Uptrend Intact After Pullback, Gold Selling Expected to Resume
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