Talking Points:
- US Dollar Stalling at December High Before FOMC
- SP 500 Finds Interim Support Below the 1800 Figure
- Gold Bottom May Be Set Above the $1200/oz Level
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices rose as expected after putting in a bullish Piercing Line candlestick pattern. The advance has now stalled ahead of resistance in the 10669-85 area, marked by the December 4 high and the 38.2% Fibonacci expansion. A break upward initially targets the 50% level at 10723. Near-term support is at 10612, a former range bottom, followed by the December 10 low at 10565.
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 fell as expected to find interim support in the 1773.90-78.90 area, marked by the 23.6% Fibonacci retracement and the October 30 swing high. A break downward from here exposes the 38.2% level at 1749.60. Near-term resistance is at 1813.10, the November 29 high.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices may be carving out a bullish Head and Shoulders bottom chart formation. Confirmation requires a close above resistance in the 1260.84-68.84 area, marked by the October 11 low and the 38.2% Fib retracement. A break higher initially exposes the 1286.57, the 50% level. Near-term support is at 1211.44, the December 6 low.
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. Support is in the 95.36-74 area, marked by the 14.6% Fibonacci expansion and the November 6 high. A further push below that eyes 93.90, the 23.6% Fib. Resistance is at 98.74, the October 28 high.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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