Talking Points
- US Dollar Finds Interim Support at Augusts’ Swing Low
- SP 500 Rally Pauses But Positioning Still Favors Gains
- Gold Snaps Trend Support, Aims Below $1300/oz Mark
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US DOLLAR TECHNICAL ANALYSIS – Prices found interim support in the 10646-57 area, marked by the August 16 low and the 61.8% Fibonacci expansion. Near-term resistance is at 10687, the 50% level, with a break above that targeting the 38.2% Fib at 10716. Alternatively, a move below support exposes the 76.4% expansion at 10620.
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 vaulted higher from support in a region bracketed by a pair of trend lines set from the November 2012. The bulls have now cleared the 38.2% Fibonacci expansion at 1684.10, exposing the 50% level at 1701.90. A further break above this barrier aims for the August 2 high at 1709.60 and the 61.8 Fib 1719.60. The 1684.10 level has been recast as support.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices broke below the bottom of a rising channel set from late-June and cleared the 1343.73-47.52 region marked by a horizontal pivot as well as the 14.6% Fibonacci expansion. Sellers now aim to challenge the 23.6% level at 1288.32. Alternatively, a reversal back above 1347.52 opens the door for a retest of the channel bottom, now at 1363.72.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices declined as expected after putting in a bearish Dark Cloud Cover candlestick pattern. Near-term support is now at 105.93, the 23.6% Fibonacci retracement, with a break below that targeting the bottom of a rising channel set from early July (now at 104.28). Channel resistance is at 110.64.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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