US Dollar Bounce Meets Resistance, SPX 500 Pullback Hinted Ahead

By DailyFx | July 07, 2014 AAA

DailyFX.com -

Talking Points:

  • US Dollar Meets Resistance After Setting Triple Bottom
  • S&P 500 Chart Setup Reveals Pullback Warning Signs
  • Crude Oil Slumps to One-Month Low, Gold Vulnerable

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

US DOLLAR TECHNICAL ANALYSIS – Prices began a swift recovery as expected after putting in a Bullish Engulfing candle pattern at double bottom support set from October 2013. Buyers are testing resistance at 10431, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 10452. Alternatively, a reversal below the 23.6% Fib at 10405 opens the door for a test of the 14.6% retracement at 10389.

US Dollar Bounce Meets Resistance, SPX 500 Pullback Hinted Ahead

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 at the top of a rising channel set from mid-April, hinting a move lower may be ahead. A break below rising trend line support at 1975.30 initially exposes the 14.6% Fibonacci retracement at 1960.10. Near-term resistance is at 1985.90, the July 3 high, followed by the channel top at 1995.10.

US Dollar Bounce Meets Resistance, SPX 500 Pullback Hinted Ahead

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices are stalling above support at 1311.47, the 23.6% Fibonacci retracement. This barrier is reinforced by a rising trend line set from early June. Negative RSI divergence warns of ebbing upside momentum, hinting a turn lower may be ahead. A break downward on a daily closing basis exposes the 38.2% level at 1297.85. Near-term resistance is at 1333.47, the July 1 high.

US Dollar Bounce Meets Resistance, SPX 500 Pullback Hinted Ahead

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices are testing support at 103.19, the 50% Fibonacci retracement, having extended downward after taking out a rising trend line set from the May 1 low. A further push lower sees the next level of support at 102.13, the 61.8% level. Alternatively, a reversal above the 38.2% Fib at 104.24 aims for the 23.6% expansion at 105.54.

US Dollar Bounce Meets Resistance, SPX 500 Pullback Hinted Ahead

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. EUR/USD sitting just above 1.2950 support
    Forex News

    EUR/USD sitting just above 1.2950 support

  2. Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data
    Forex News

    Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data

  3. USD/JPY drifting lower, but still well above 107.00
    Forex News

    USD/JPY drifting lower, but still well above 107.00

  4. Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping
    Forex News

    Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping

  5. USD/JPY Technical Analysis: Prices Set New Six-Year High
    Forex News

    USD/JPY Technical Analysis: Prices Set New Six-Year High

Trading Center