THE TAKEAWAY: The US Dollar found interim support at Augusts’ swing low while the SP 500 has continued to plunge, hitting the weakest level in six weeks.
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US DOLLAR TECHNICAL ANALYSIS – Prices are edging higher from support at 10650, the August 8 low. Near-term resistance is at 10708,the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 10744. Alternatively, a move below support eyes the bottom of a falling channel set from early July, now at 10606.
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 ANALYSIS – Prices pulled back as expected after putting in a Hanging Man candlestick. Sellers have now cleared support at 1652.10, the 38.2% Fibonacci retracement, exposing the 50% level at 1634.30. A further push beneath that targets the 61.8% Fib at 1616.60. Alternatively, a move back above 1652.10 eyes the 23.6% retracement at 1674.10.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at 1376.28, the 61.8% Fibonacci expansion. Near-term support is at 1356.22, the 50% Fib, with a break beneath that targeting the 38.2% level at 1336.76. Alternatively, a reversal above 1376.28 aims for the 76.4% expansion at 1400.72.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices completed a Flag chart pattern, a setup indicative of bullish continuation. A pullback from initial resistance at 108.40, the 38.2% Fibonacci expansion, sees initial support at the broken Flag top (now at 106.45). A move back below that targets rising trend line support at 104.58. Alternatively, a renewed push higher above 108.40 aims for the 50% level 110.32.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
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