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Forex pairs in this Article » GOLD, OIL, USDOLLAR
THE TAKEAWAY: Continued US Dollar selling has brought prices to challenge the outer boundary of the rising trend that has guided the greenback higher since December 2012.

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US DOLLAR TECHNICAL ANALYSIS Prices moved lower as expected after putting in a Bearish Engulfing candlestick pattern. Sellers are now testing support in the 10510-576 area, marked by the 38.2% Fibonacci retracement, the March 8 high, and a rising trend line set from mid-December 2012. A break below this initially exposes the 50% level at 10397. Near-term resistance is at 10650, the 23.6% Fib.

Forex_US_Dollar_Sellers_Challenge_Rising_Trend_Boundaries_body_Picture_5.png, US Dollar Sellers Challenge Rising Trend BoundariesDaily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices are testing falling channel resistance set from late May, a barrier reinforced by the 38.2% Fibonacci expansion at 1627.70. A break above the latter barrier exposes the 23.6% level at 1635.20. Near-term support is at 1621.70, the 50% Fib, with a move beneath that eyeing the 61.8% expansion at 1615.60.

Forex_US_Dollar_Sellers_Challenge_Rising_Trend_Boundaries_body_Picture_6.png, US Dollar Sellers Challenge Rising Trend Boundaries4hr 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 Flag chart formation, which likewise argues for bearish continuation. A break below the setup’s lower boundary (1398.67) initially exposes the 23.6% Fibonacci expansion at 1386.51. Alternatively, a move above the Engulfing high (1421.90) exposes the Flag top at 1437.83.

Forex_US_Dollar_Sellers_Challenge_Rising_Trend_Boundaries_body_Picture_7.png, US Dollar Sellers Challenge Rising Trend Boundaries8hr Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices broke above near-term trend line resistance set from the May 20 swing high after completing a bullish Piercing Line candlestick pattern, exposing the 38.2% Fibonacci expansion at 95.71. A break above that targets the area marked by the 50% level and a falling trend line established from mid-September 2012. Near-term support is at 94.00, the 23.6% level, with a move beneath that eyeing the June 3 low at 91.23.

Forex_US_Dollar_Sellers_Challenge_Rising_Trend_Boundaries_body_Picture_8.png, US Dollar Sellers Challenge Rising Trend BoundariesDaily 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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