Talking Points:
- US Dollar Recoils Downward from 2-Month Trend Resistance
- SP 500 Continues to Search for Direction Near 2013 Top
- Gold Reverses as Expected, Crude Oil Hits Three-Week High
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices are testing below support in the 10707-27 area, marked by the December 19 high and the 23.6% Fibonacci expansion. A break downward initially targets rising channel support at 10646. Near-term resistance is in the 10761-69 region, bracketed by the 38.2% Fib and the channel’s upper boundary.
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 are testing resistance in the 1844.90-49.10 area, marked by the December 31 high and the 14.6% Fibonacci expansion. A break higher exposes the 23.6% level at 1863.10. Near-term support is at 1819.60, the 14.6% Fib retracement.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices turned lower as expected after putting in a Shooting Star candlestick below support-turned-resistance at 1261.82, completing a bearish Rising Wedge chart formation. From here, a close beneath horizontal pivot support at 1240.12 exposes 1218.82, the 23.6% Fibonacci expansion. Wedge bottom support-turned-resistance is at 1247.80.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices pushed higher as expected after putting in a bullish Piercing Line candlestick pattern. A break above resistance at 95.97, the 50% Fibonacci retracement, exposes the 61.8% level at 97.09. Reversing below support at 94.85, the 38.2% Fib, aims for the 23.6% retracement at 93.46.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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