US Dollar Extends Gains as S&P 500 Breaks 7-Month Trend
THE TAKEAWAY: The US Dollar continued to push higher in the wake of the FOMC policy announcement while the S&P 500 overturned the rising trend in place since November 2012.
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US DOLLAR TECHNICAL ANALYSIS– Prices found interim support above a rising trend line set from late February and launched a recovery, with the bulls now challenging the 61.8% Fibonacci retracement at 10721. A further push higher targets the 76.4% level at 10781. The 50% Fib at 10673 is acting as near-term support, with a reversal back beneath that eyeing the 38.2% retracement at 10625.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices dropped through a support cluster marked by rising trend lines set from mid-November 2012 and February of this year, with sellers now testing the 76.4% Fibonacci expansion at 1585.80. A further push beneath that aims for the 100% level at 1564.60. Alternatively, a recovery above the 1600 figure sees trend line support-turned-resistance at 1607.40.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices dove sharply lower, with sellers now testing the 100% Fibonacci expansion at 1273.77. A break beneath that exposes the 123.6% level at 1238.38. Near-term resistance is at 1309.16, the 76.4% Fib, followed by the 61.8% expansion at 1331.05.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices punched below support at 95.21, the 50% Fibonacci retracement, exposing the 61.8% level at 94.27. This is followed by a rising trend line set from mid-April, now at 93.73. Alternatively, a move back above 95.21 eyes the 38.2% Fib at 96.15.
8hr 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
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