THE TAKEAWAY: US Dollar technical positioning continues to warn of a larger corrective pullback in the coming days before the larger bullish trend regains momentum.
S&P 500 – Prices took out resistance at 1325.40 to expose the next upside barrier at 1341.90. A break above this boundary exposes 1358.90. The 1325.40 level has been recast as near-term support, with a push back below here on a daily close basis opening the door for a challenge of 1311.10.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices continue to drift above support at 90.14, with a Harami candlestick pattern coupled with positive RSI divergence warning that a bounce may be ahead. Initial resistance lines up at 93.35, with a break above that exposing 96.48. Alternatively, a push through support exposes downside objectives at 88.54 and 83.34.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices continue to consolidate above support in the 1522.50-1532.45 area. Near-term trend line support-turned-resistance lines up at 1583.45. A break above this boundary exposes the 1600/oz figure followed by the top of a channel set from late February, now at 1616.74.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices are staging an intraday bounce but a bearish Breakaway candlestick pattern remains valid and continues to warn of a larger pullback ahead. Initial support lines up in the 10134-41 area, defined by the 76.4% Fibonacci expansion and the October 2011 swing high, with a break lower exposing the 61.8 expansion at 10078. Alternatively, a daily close above the 10225-41 area marked by the May 25 high and 100% Fib would neutralize bearish cues.
