THE TAKEAWAY: The US Dollar failed to find fuel for a meaningful advance despite a sharp decline in the S&P 500 that may have been expected to help the safe-haven greenback.
Capitalize on Shifts in Market Mood with the DailyFX Speculative Sentiment Index.
US DOLLAR TECHNICAL ANALYSIS– Prices moved lower as expected, taking out the 14.6% Fibonacci retracement level at 10711 and exposing the 23.6% Fib at 10609. A further push beneath that eyes the 38.2% level at 10443. The 10711 mark has been recast as near-term resistance, with a break back above that eyeing the underside of a recently broken rising channel at 10823.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices dropped to support at 1607.50, the 61.8% Fibonacci expansion. A break below that exposes the 76.4% level at 1598.10. Near-term trend line resistance is at 1615.20, the 50% Fib, with a move back above that eyeing the 38.2% expansion at 1622.80.
4hr Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern, hinting a turn lower may be ahead. Overall positioning looks to be taking the shape of a Pennant chart formation, which likewise argues for bearish continuation. A break below the setup’s lower boundary (1398.91) initially exposes the 23.6% Fibonacci expansion at 1386.51. Alternatively, a move above near-term trend line resistance at 1409.72 targets the Pennant top at 1427.98.
8hr Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices declined as expected after putting in a bearish Dark Cloud Cover candlestick pattern. A bounce from falling channel support targets the formation’s top at 94.48, with a break above that aiming for a falling trend line set from September 2012, now at 96.75. Channel support is at 90.58.
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.