Talking Points:
- US Dollar Chart Positioning Favors Gains After Corrective Pullback
- SP 500 Sets New Record High But Bullish Momentum May Unravel
- Gold May Be Shaping Double Bottom, Crude Oil Could Start Bounce
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices pulled back to retest resistance-turned-support at 10565, marked by the top of a falling channel set from July and a horizontal barrier in play since late September. A break below this eyes the November 6 low at 10492. Near-term resistance is at 10653, the 23.6% Fibonacci expansion, with a push above that targeting the 38.2% level at 10839.
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 cleared resistance at 1771.30, the 23.6% Fibonacci expansion, exposing the 38.2% level at 1790.50. A further push beyond that eyes the 50% Fib at 1806.10. Negative RSI divergence warns of ebbing bullish momentum however, warning of a possible reversal in the works. A turn back below 1771.30 initially exposes the November 8 low at 1740.10.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a bullish Piercing Line candlestick pattern, hinting at rebound ahead. Near-term resistance is at 1294.51, marked by the 23.6% Fibonacci retracement and reinforced by the top of a minor falling channel. A break above that initially exposes the 38.2% Fib at 1321.09. Initial support is at 1261.28, the November 12 low.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices put in an Inverted Hammer candlestick above support at 93.05, the November 5 low, hinting a bounce may be ahead. Initial resistance is at 95.85, marked by the 14.6% Fibonacci expansion and reinforced by the top of a falling channel set from late August. A break higher initially exposes the 23.6% level at 97.57. Alternatively, a move below 93.05 targets the channel bottom at 91.45.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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