Crude Oil Rebound Stalls, US Dollar Struggling to Build Higher

Talking Points:

  • US Dollar Struggling to Breach Familiar Resistance
  • SP 500 Inching Lower After Topping Sub-2000.00
  • Crude Oil Rebound Stalls Below $104/Barrel Level

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

US DOLLAR TECHNICAL ANALYSIS – Prices are struggling to build upward having reversed higher as expected after producing a Bullish Engulfing candle pattern. Buyers are testing resistance in the 10442-56 area, marked by the July 3 high and the 23.6% Fibonacci retracement. A break above that on a daily closing basis exposes the 38.2% level at 10513. Alternatively, a below rising trend line support at 10426 targets the July 9 low at 10392, followed by a triple bottom in the 10354-75 area.

Crude Oil Rebound Stalls, US Dollar Struggling to Build Higher

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.

SP 500 TECHNICAL ANALYSISPrices are begrudgingly inching lower as expected after putting in a bearish Evening Star candlestick pattern. A daily close below support at the bottom of a rising channel set from mid-April – now at 1958.50 – exposes the 38.2% Fibonacci retracement at 1938.50. Alternatively, a reversal above the 23.6% Fib expansion at 1977.70 opens the door for a challenge of the July 3 high at 1985.90, followed by the 38.2% level at 1995.80.

Crude Oil Rebound Stalls, US Dollar Struggling to Build Higher

Daily Chart – Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices have mounted a corrective recovery after turning downward as expected. A break above the 23.6% Fibonacci retracement at 1320.34 on a daily closing basis initially exposes the 14.6% level at 1329.78. Alternatively, a move below the 38.2% level at 1305.3 opens the door for a test of the 50% Fib at 1292.66.

Crude Oil Rebound Stalls, US Dollar Struggling to Build Higher

Daily Chart – Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – A rapid recovery has stalled below the $104/barrel figure. A break below support at 102.65, the 14.6% Fibonacci expansion, on daily closing basis exposes the 23.6% level at 101.87. Near-term resistance is at 103.91, the July 18 high.

Crude Oil Rebound Stalls, US Dollar Struggling to Build Higher

Daily Chart – Created Using FXCM Marketscope 2.0

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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