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

Related Articles
  1. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  2. Investing Basics

    Top Tips for Diversifying with Exotic Currencies

    Is there an opportunity in exotic currencies right now, or are you safer sticking to the major ones?
  3. Mutual Funds & ETFs

    The 3 Biggest Mutual Fund Companies in the US

    Compare and contrast the rise of America's big three institutional asset managers: BlackRock Funds, The Vanguard Group and State Street Global Advisors.
  4. Professionals

    5 Top-Rated Funds for Your Retirement Portfolio

    Mutual funds are a good choice for emotional investors. Here are five popular funds to consider.
  5. Mutual Funds & ETFs

    The 4 Best Buy-and-Hold ETFs

    Explore detailed analyses of the top buy-and-hold exchange traded funds, and learn about their characteristics, statistics and suitability.
  6. Chart Advisor

    Bumpy Roads Ahead In Transportation

    Investors are keeping an eye on the transportation industry. We'll take a look at the trend direction and how to trade it.
  7. Investing

    How ETFs May Save You Thousands

    Being vigilant about the amount you pay and what you get for is important, but adding ETFs into the investment mix fits well with a value-seeking nature.
  8. Mutual Funds & ETFs

    3 Fixed Income ETFs in the Mining Sector

    Learn about the top three metals and mining exchange-traded funds (ETFs), and explore analyses of their characteristics and how investors can benefit from these ETFs.
  9. Chart Advisor

    Agriculture Commodities Are In The Bear's Sights

    Agriculture stocks have experienced strong moves higher over recent weeks, but chart patterns on sugar, corn and wheat are suggesting the moves could be short lived.
  10. Investing News

    Top Tips for Diversifying with Mutual Funds

    Are mutual funds becoming obsolete? If they have something to offer, which funds should you consider for diversification?
  1. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  2. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  3. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  4. What is the difference between passive and active asset management?

    Asset management utilizes two main investment strategies that can be used to generate returns: active asset management and ... Read Full Answer >>
  5. Is there a situation in which wash trading is legal?

    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>
  6. Are there leveraged ETFs that follow the retail sector?

    There are many exchange-traded funds (ETFs) that track the retail sector or elements of the retail sector, and some of those ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!