Talking Points:
- US Dollar Breaks Range Floor, Drops to Lowest in a Month
- S&P 500 Recovery Capped at Trend Line Resistance Again
- Gold, Crude Oil Continue to Mark Time at Familiar Levels
US DOLLAR TECHNICAL ANALYSIS – Prices broke downward out of consolidation, hitting the weakest level in a month. Near-term support is at 11790, the 61.8% Fibonacci retracement, with a break below that on a daily closing basis exposing the 76.4% level at 11731. Alternatively, a move above the 11834-9 area (May 20 close, 50% Fib) opens the door for a challenge of the 38.2% retracement at 11887.
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices rebounded from rising trend line support set from late-March once again. From here, a push above 2107.10 (downward-sloping resistance, 38.2% Fibonacci expansion) exposes the 50% level at 2119.10. Alternatively, a move below the 2077.20-82.90 area (trend line, 61.8% Fib retracement) targets the 76.4% threshold at 2063.00.
GOLD TECHNICAL ANALYSIS – Prices continue to tread water below the $1200/oz figure. A break above the 38.2% Fibonacci retracement at 1189.26 exposes trend line support-turned-resistance at 1193.08, followed by the 50% Fibonacci retracement at 1197.47. Alternatively, a move below the 23.6% Fib expansion at 1175.79 targets the 38.2% threshold at 1165.62.
CRUDE OIL TECHNICAL ANALYSIS – Prices may be resuming the recovery launched from mid-January lows after completing a Flag continuation pattern. Near-term resistance is at 66.69, the 23.6% Fibonacci expansion, with a break above that exposing the 38.2% level at 70.25. Alternatively, a move below trend line support at 63.47 targets the 38.2% Fib retracement at 60.27.
