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Forex pairs in this Article » GOLD, OIL, USD
Talking Points

  • US Dollar Clears April Low, Drops to Weakest in 8 Months
  • S&P 500 Continues to Grind Higher, Setting Another Record
  • Gold Finds Strength Anew as Prices Push Deeper Above 1300
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Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **

US DOLLAR TECHNICAL ANALYSIS – Prices broke below 10391, the April swing bottom, to expose resistance-turned-support marked by the June 1 2012 swing high (10323). The 10391 level has been recast as near-term resistance, with a push back above that eyeing the June bottom at 10469.

US_Dollar_Drops_to_8-Month_Low_as_SPX_500_Sets_Record_High_body_Picture_5.png, US Dollar Drops to 8-Month Low as SPX 500 Sets Record HighDaily 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 recovered as expected after showing a Spinning Top candlestick at support marked by a rising trend line set from late February. Buyers are testing resistance at 1754.40, the 100% Fibonacci expansion, with a break above that eyeing the 123.6% level at 1779.80. Near-term support is at 1729.00, the 76.4% Fib.

US_Dollar_Drops_to_8-Month_Low_as_SPX_500_Sets_Record_High_body_Picture_6.png, US Dollar Drops to 8-Month Low as SPX 500 Sets Record HighDaily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices broke higher as expected after putting in a bullish Morning Star candlestick pattern. Resistance is now at 1342.57, the 50% Fibonacci retracement, with a break above that targeting the 61.8% level at 1364.06. Near-term support is at 1321.09, the 38.2% Fib. A reversal back beneath that eyes the 23.6% Fib at 1294.51.

US_Dollar_Drops_to_8-Month_Low_as_SPX_500_Sets_Record_High_body_Picture_7.png, US Dollar Drops to 8-Month Low as SPX 500 Sets Record HighDaily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices continued to move lower as expected, taking out support at the 38.2% Fibonacci retracement (98.86) to expose the bottom of a channel set from late August (now at 97.29). A break below that aims for the 50% Fib at 94.73. Alternatively, a reversal back above 98.86 eyes the September 14 2012 swing top at 100.40.

US_Dollar_Drops_to_8-Month_Low_as_SPX_500_Sets_Record_High_body_Picture_8.png, US Dollar Drops to 8-Month Low as SPX 500 Sets Record HighDaily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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