US Dollar Touches One-Month High, Gold in Consolidation Mode

Talking Points:

  • US Dollar Inches Upward to Tag a 1-Month High
  • SP 500 Remains Capped Below July Swing Top
  • Crude Oil Retreats, Gold in Consolidation Mode

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

US DOLLAR TECHNICAL ANALYSIS – Prices rebounded as expected after putting in a Bullish Engulfing candle pattern at support set from October 2013. A daily close above the 23.6% Fibonacci retracement at 10456 initially exposes the 38.2% level at 10513. Alternatively, reversal below rising trend line support set from the July 1 low at 10430 opens the door for a test of the July 9 low at 10392, followed by a triple bottom in the 10354-75 area.

US Dollar Touches One-Month High, Gold in Consolidation Mode

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 1960.80 – exposes the 38.2% Fibonacci retracement at 1938.50. Alternatively, a reversal above resistance in the 1977.70-85.90 area, marked by the 23.6% Fib expansion and the July 3 high, clears the way for a test of the 38.2% expansion at 1995.80.

US Dollar Touches One-Month High, Gold in Consolidation Mode

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.

US Dollar Touches One-Month High, Gold in Consolidation Mode

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 101.87, the 23.6% Fibonacci expansion, on daily closing basis exposes the 38.2% level at 100.61. Near-term resistance is at 102.65, the 14.6% Fib, followed by the July 18 high at 103.91.

US Dollar Touches One-Month High, Gold in Consolidation Mode

Daily Chart – Created Using FXCM Marketscope 2.0

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

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