Chart Bites: End of the USD decline, oil pullback
- Range-bound S&P 500 showing lack of upside momentum
- Crude still trading within its descending broadening wedge - pullback possible
- Gains in gold are likely to be capped by multi-year trendline resistance
By Edmund Liu
The price target from the Head and Shoulders top has been reached last week. This could possibly mark the end of the US dollar index decline since 2017.
The S&P500, now range bound for weeks. Lack of upside momentum on the S&P500 is coupled with bearish MACD and RSI indicators.
The Nasdaq appears to be forming a descending triangle, support is at 5600 which will be bearish if broken
The SPI still trades within its downtrend channel since April 2017, while recent price action appears to be supported on the 200 day moving average
Light Sweet Crude is still trading within its descending broadening wedge, however stochastics are overbought and we may see a pullback in the coming days
Wheat has finally broken out of multiyear trendline resistance. A break of the 550 resistance region would set sights on 620 as the next level of resistance
XAUUSD and USDJPY
Correlation between these two pairs have been returned to -1. Stronger JPY (lower USDJPY) in the coming days should see gold higher, but gains in gold are likely to be capped by multiyear trendline resistance
-- Edited by Adam Courtenay
Edmund Liu is a trader on TradingFloor.com
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