S&P 500 Soars, US Dollar Sinks into Final Hours of the Trading Week
THE TAKEAWAY: A sharp reversal in risk sentiment trends is seeing the US Dollar break lower as the SP 500 soars into the end of the trading week.
SP 500 – Prices are testing above resistance in the 1334.40-1341.90 area after bouncing from support above 1305.90, the 38.2% Fibonacci expansion. A break higher exposes 1363.90. Alternatively, a turn back through support targets the 1300 figure followed by the 50% Fib at 1288.10.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices have shown little follow-through after completing a bullish Piercing Line candlestick pattern above support at 77.34, the 38.2%Fibonacci expansion, but the setup remains valid. Positive RSI divergence continues to reinforce the case for an upside scenario. Initial resistance lines up at 81.07, the 23.6% Fib, with a break higher exposing the June 7 high at the 87.00 figure. Alternatively, a push through support exposes the 50% Fib at 74.35.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD – Prices snapped support at a rising trend line support set from the mid-May swing low, a barrier is reinforced by the 50% at 1568.46, to challenge the 61.8% level at 1551.50. Continued selling from here targets the 1522.50-32.45 region. The 1568.46 level has been recast as resistance.
Daily Chart – Created Using FXCM Marketscope 2.0
US DOLLAR – Prices are testing below resistance-turned-support at 10134, the October 4 2011 high, with sellers aiming to challenge 10081 from here. A break below that boundary exposes 10032. Near-term resistance lines up at 10172, the 14.6% Fibonacci expansion, with a reversal back above that clearing the way for a test of the 23.6% expansion at 10261.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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Article source: http://finance.yahoo.com/news/p-500-soars-us-dollar-044200559.html