Gold Prices Inching Lower, SPX 500 Chart Setup Shows Bearish Cues

By DailyFx | Updated July 27, 2014 AAA

DailyFX.com -

Talking Points:

  • US Dollar Reaches 6-Week High as Recovery Continues
  • S&P 500 Technical Setup Reveals Topping Cues Again
  • Crude Oil Ranging Below 104.00, Gold Inching Lower

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

US DOLLAR TECHNICAL ANALYSIS – Prices continue to advance as expected after putting in a Bullish Engulfing candle pattern at support set from October 2013. Near-term resistance is at 10481, a horizontal pivot in play since April. A daily close above that exposes 38.2% Fibonacci retracement at 10513. Alternatively, reversal back below the 23.6% level at 10456 clears the way for a test of a rising trend line set from the July 1 low, now at 10443.

Gold Prices Inching Lower, SPX 500 Chart Setup Shows Bearish Cues

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 put in a bearish Evening Star candlestick pattern, hinting a move lower may be ahead. Negative RSI divergence bolsters the case for a downside scenario. A daily close below rising channel floor support at 1967.00 exposes the 23.6% Fibonacci retracement at 1948.40. Near-term resistance is at 1991.40, the July 24 high.

Gold Prices Inching Lower, SPX 500 Chart Setup Shows Bearish Cues

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices are drifting cautiously lower having topped below $1350/oz three weeks ago. Near-term support is in the 1284.95-87.13 area, marked by a falling trend line set from late June and the 38.2% Fibonacci expansion. A break below that on a daily closing basis exposes the 50% level at 1269.22. Alternatively, a reversal above the 23.6% Fib at 1309.20 eyes the 14.6% expansion at 1322.94.

Gold Prices Inching Lower, SPX 500 Chart Setup Shows Bearish Cues

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices are consolidating above support at 101.87, the 23.6% Fibonacci expansion. A break below that on a daily closing basis exposes the 38.2% level at 100.61. Near-term resistance is at 103.91, the July 18 high, with a move above that eyeing 104.73.

Gold Prices Inching Lower, SPX 500 Chart Setup Shows Bearish Cues

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market
    Forex News

    Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market

  2. Dollar May Not Have a Quiet Thanksgiving...
    Forex News

    Dollar May Not Have a Quiet Thanksgiving...

  3. Gold Rallies on PBOC, ECB Surprise Easing -1207 Key Resistance
    Forex News

    Gold Rallies on PBOC, ECB Surprise Easing -1207 Key Resistance

  4. AUD To Look Past Local Data Yet Remains At Risk On Elevated Volatility
    Forex News

    AUD To Look Past Local Data Yet Remains At Risk On Elevated Volatility

  5. GBP/USD to Break Out on Less-Dovish BoE, Weak U.S. 3Q GDP
    Forex News

    GBP/USD to Break Out on Less-Dovish BoE, Weak U.S. 3Q GDP

Trading Center