US Dollar Hits 6-Month Low After Another Dramatic Decline
Dailyfx | May 07, 2014 06:51AM ET
- US Dollar Hits 6-Month Low After Another Dramatic Decline
- S&P 500 Slumps Back to Recent Range Bottom Above 1850
- Gold Continues to Look Vulnerable on Triangle Chart Setup
US DOLLAR TECHNICAL ANALYSIS
Prices issued their largest drop in a month, bringing greenback to the weakest level since October 2013. Sellers now aim to challenge the 38.2% Fibonacci expansion at 10359. A break below this barrier exposes the bottom of a falling channel guiding the down trend since the beginning of the year, now at 10339. Alternatively, a move back above the 23.6% level at 10411 aims for the 14.6% Fib at 10443.
S&P 500 TECHNICAL ANALYSIS
Prices rebounded as expected after putting in a Piercing Line candlestick pattern. Prices have pulled back to support at 1868.70, the 23.6% Fibonacci expansion, with break below that aiming for the April 28 low at 1850.10. Alternatively, a reversal above the 38.2% level at 1880.30 targets the 50% Fib at 1889.60.
Gold TECHNICAL ANALYSIS
Prices are approaching resistance at 1318.69, marked by the top of a descending Triangle chart formation and the 23.6% Fibonacci expansion. A break above this barrier targets the 38.2% level at 1349.81. The descending Triangle argues in favor of bearish continuation however (though confirmation is absent for now). Near-term support is at 1277.00, the Triangle bottom.
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Crude Oil TECHNICAL ANALYSIS:
Prices are turned sharply lower below the 105.00 figure, sinking to challenge support at 98.96 marked by the 76.4% Fibonacci expansion. A break below this boundary initially exposes the 100% level at 97.11. Near-term resistance is at 100.11, the 61.8% Fib, followed by the 50% expansion at 101.04.
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