Talking Points
- US Dollar Launches an Impressive Recovery Before FOMC
- SP 500 Approaching Chart Resistance Level Below 1780.00
- Gold Price Rally Stalls, Crude Oil Recovery Suffers Setback
To receive Ilya’s analysis directly via email, please SIGN UP HERE
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices broke back above support-turned-resistance at April’s bottom (10424) and cleared the 23.6% Fibonacci retracement at 10462. Buyers now aim to challenge a formerly broken Wedge formation bottom at 10505, with a further push higher beyond that eyeing the 38.2% Fib at 10529. Alternatively, a move back below 10424 targets the October 23 low at 10354.
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 recovered as expected after showing a Spinning Top candlestick at support marked by a rising trend line set from late February. A break above resistance at 1754.40, the 100% Fibonacci expansion, has exposed the 123.6% level at 1779.80, with a further push beyond that eyeing the 138.2% Fib at 1795.50. Alternatively, dropping back below 1754.40 sees the first layer of support at 1729.00, the 76.4% expansion.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices broke higher as expected after putting in a bullish Morning Star candlestick pattern. A pullback from resistance at 1364.06, the 61.8% Fibonacci retracement, sees prices testing the 50% level at 1342.57 as support. A break downward initially targets the 38.2% Fib at 1321.09. Alternatively, a reversal above resistance aims for the 76.4% retracement at 1390.64.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices are attempted to edge higher as expected after putting in a bullish Morning Star candlestick pattern at the bottom of a falling channel set from late August. Follow-through has been limited thus far however, with buyers suffering a sizable setback over the past 24 hours. Near-term resistance is at 99.77, the 23.6% Fibonacci retracement, with a break above that targeting the channel top at 101.10. Support is now in the 98.85-93 area, marked by the channel bottom and the October 24 swing low.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
Contact and follow Ilya on Twitter: @IlyaSpivak
For live market updates, visit the Real Time News Feed