Talking Points:
- US Dollar Rebounds to Invalidate Range Break
- SP 500 Recoils Higher After Hitting 3-Week Low
- Gold Chart Setup Hints Renewed Selling is Ahead
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices overturned yesterday’s range support break and turned sharply higher, forming a Bullish Engulfing candlestick pattern. Initial resistance is at 10707, the 23.6% Fibonacci expansion, with a break above that exposing the 38.2% level at 10761. Channel support is now at 10633.
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 swiftly rebounded from support at 1819.60, the 14.6% Fibonacci retracement. Breaking above resistance at 1844.90 – the 14.6% Fib expansion – targets the 23.6% level at 1863.10. Alternatively, a turn below support targets the 23.6% retracement at 1801.40.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern below support-turned-resistance at 1261.28, hinting a move lower is ahead. Near-term support is in the 1212.03-17.75 area, marked by the December 2 low and the 23.6% Fibonacci expansion. A break below that targets the 1200.00 figure and the 38.2% level at 1185.34.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices overturned yesterday’s breakdown, completing a bullish Piercing Line candlestick pattern. Breaking above resistance at 93.46 – the 23.6% Fibonacci retracement – exposes the 38.2% level at 94.85. Near-term support is at 91.21, the January 9 swing low.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya’s analysis directly via email, please SIGN UP HERE
Contact and follow Ilya on Twitter: @IlyaSpivak