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S&P 500 Pulls Back, Dollar Clears Resistance Before Bernanke Speech

By , Currency Strategist
26 August 2011 01:18 GMT

THE TAKEAWAYFamiliar trading patterns returned today, with the safe-haven US Dollar clearing resistance as the S&P 500 fell before a critical speech from Ben Bernanke.

S&P 500 – Prices are reversing lower from resistance at 1183.74, the intersection of the 38.2% Fibonacci retracement level and the midline of a rising channel set from the early August swing low. Initial support stands at 1144.13, the 23.6% Fib.

SP_500_Pulls_Back_Dollar_Clears_Resistance_Before_Bernanke_Speech_body_Picture_5.png, S&P 500 Pulls Back, Dollar Clears Resistance Before Bernanke Speech

CRUDE OIL We noted yesterday that prices put in a bearish Dark Cloud Cover candlestick pattern, hinting a move lower is ahead. So far, prices have yielded little follow-through, with a Doji produced on the latest bar. Broadly speaking, yesterday’s range remains intact, with near-term support and resistance at $83.89and $85.83, the 38.2% and 23.6% Fibonacci retracement levels respectively.

SP_500_Pulls_Back_Dollar_Clears_Resistance_Before_Bernanke_Speech_body_Picture_6.png, S&P 500 Pulls Back, Dollar Clears Resistance Before Bernanke Speech

GOLD Prices completed a Hammer candlestick above support at $1746.19, the 38.2% Fibonacci retracement level, hinting a corrective upswing may be ahead after the metal took out rising trend line resistance two days ago. The initial upside barrier from here stands at $1809.48, the 23.6% Fib.

SP_500_Pulls_Back_Dollar_Clears_Resistance_Before_Bernanke_Speech_body_Picture_7.png, S&P 500 Pulls Back, Dollar Clears Resistance Before Bernanke Speech

US DOLLAR Prices followed up a bullish Piercing Line candlestick pattern identified yesterday with a break above resistance at 9502, the 50% Fibonacci retracement level. This boundary is now acting as near-term support, with the next layer of resistance lining up at the 38.2% retracement level (9544).

SP_500_Pulls_Back_Dollar_Clears_Resistance_Before_Bernanke_Speech_body_Picture_8.png, S&P 500 Pulls Back, Dollar Clears Resistance Before Bernanke Speech

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26 August 2011 01:18 GMT