Crude Oil Soars to 10-Month High, SPX 500 and US Dollar Fall Together

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points:

  • US Dollar Breakdown Puts Multi-Year Uptrend at Risk
  • S&P 500 Reversal Continues as Prices Hit 1-Week Low
  • Crude Oil Prices Break $107 to Reach 10-Month High

Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **

US DOLLAR TECHNICAL ANALYSIS – Prices turned sharply lower, putting in question the fate of the upside breakout secured in mid-May. Sellers have taken out resistance-turned-support in the 10474-95 area, exposing pivotal rising trend line support set from July 2011 (now at 10426). A break below this barrier on a daily closing basis targets a double bottom at 10375. Alternatively, a reversal back above 10495 opens the door for another test of 10531, the May 28 high.

Crude Oil Soars to 10-Month High, SPX 500 and US Dollar Fall Together

Daily 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 ANALYSISPrices turned lower as expected after putting in a Hanging Man candlestick.Near-term support is at 1920.00, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 1908.90. This barrier is reinforced by the bottom of a rising channel guiding the index’s uptrend since mid-April. Alternatively, a turn back above the 23.6% Fib at 1933.70 clears the way for a test of the 14.6% retracement at 1942.20.

Crude Oil Soars to 10-Month High, SPX 500 and US Dollar Fall Together

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices continued to recover, with buyers aiming to challenge resistance in the 1276.04-77.00 area marked by the 23.6% Fibonacci retracement and the underside of a recently broken Triangle pattern. A break above this barrier on a daily closing basis exposes the Triangle top at 1288.78, followed by the 38.2% level at 1298.19. Near-term support is at 1262.38, the 14.6% Fib, followed by the June 3 low at 1240.23.

Crude Oil Soars to 10-Month High, SPX 500 and US Dollar Fall Together

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices launched dramatically higher, hitting the strongest level since mid-September 2013. Near-term resistance is at 107.32, the 100% Fibonacci expansion, with a break above that targeting the 123.6% level at 108.68. Support comes in at 105.96, the 76.4% Fib. A reversal below that initially aims for the 61.8% expansion at 105.12.

Crude Oil Soars to 10-Month High, SPX 500 and US Dollar Fall Together

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    Euro Flounders at Yearly Lows as Likelihood of ECB QE Increases

  2. Forex News

    Weekly Trading Forecast: How Far can the Dollar Go in 2014?

  3. Forex News

    Japanese Yen May Resume Recovery on Year-End Capital Flows

  4. Forex News

    GBP/USD Range in Focus Ahead of U.K. & U.S. 3Q GDP Reports

  5. Forex News

    US session recap: USD index and stocks rally for record highs

Trading Center