The S&P 500 has recovered to retest the boundaries of this week’s downside breakout, pushing the US Dollar back to five-week range support.
THE TAKEAWAY: The S&P 500 has recovered to retest the boundaries of this week’s downside breakout, pushing the US Dollar back to five-week range support.
S&P 500 – Prices are retesting support-turned-resistance at 1363.90, a multi-month pivot reinforced by the underside of a previously broken Rising Wedge pattern set from early June. A break higher exposes 1380.60 and 1392.10. Near-term support lines up in the 1334.40-41.90 area.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices are edging higher from support in the 87.65-88.32 area, marked by the July 3 closing high and the 14.6% Fibonacci expansion, to test the 90.00 figure. A break higher from here exposes the July 19 high at 93.21. Alternatively, a break lower exposes the 23.6% level at 85.37.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD – Prices are testing resistance in the 1615.65-35.70 area after taking out falling trend line resistance set from late March, with a break higher initially exposing 1671.49. The trend line, now squarely at the 1600/oz figure, has been recast as near-term support.
Daily Chart – Created Using FXCM Marketscope 2.0
US DOLLAR – Prices are testing familiar support at 10032, with a break lower exposing a major rising trend line set from August 2011 now at 9971. Near-term resistance lines up at 10067, with a break above that targeting the 10145-74 area.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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This article (US Dollar Sinks to Range Support as S&P 500 Retests Breakout Barrier) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.