Talking Points:
- US Dollar in Digestion Mode, Oscillating at Familiar Levels
- SP 500 Reclaims 1900 as Rebound Extends for Third Day
- Gold on Pace to Hit Six-Week High After Resistance Break
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices moved lower as expected after producing a bearish Dark Cloud Cover candlestick pattern. A daily close below falling channel bottom support at 10890 exposesthe 38.2% Fibonacci retracementat 10845. Alternatively, a turn above the channel top at 11044 clears the way for a test of 11143, the October 3 high.
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 reclaimed a foothold above the 1900.00 figure, with buyers now aiming to challenge the 1920.50-26.00 area marked by the underside of a broken long-term channel floor and the 38.2% Fibonacci retracement. A daily close above this barrier exposes the 61.8% level at 1944.50. Alternatively, a turn back below the 38.2% Fib at 1896.50 targets the 23.6% retracement at 1866.90.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices advanced as expected after putting in a bullish Piercing Line candlestick pattern. Buyers now aim to challenge the 50% Fibonacci retracement at 1264.01, with a break above that on a daily closing basis exposing the 61.8% level at 1283.14. Alternatively, a turn back below the 38.2% Fib at 1244.88 targets the 23.6% retracement at 1221.20.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices put in a Bullish Engulfing candlestick pattern, hinting a bounce may be ahead. A break above the 14.6% Fibonacci retracement at 87.67 exposes channel floor support-turned-resistance at 88.65. Near-term support is at 82.88, the October 15 low.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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