THE TAKEAWAY – The US Dollar and the S&P 500, poster-children for safe-haven and risky assets respectively, are locked in ranges as sentiment trends look for directional conviction.
S&P 500 – Prices are locked in a range between 1244.37 and 1264.08, the 14.6% and 23.6% Fibonacci extension levels. Resistance is reinforced by support-turned-resistance at a rising trend line set from mid-October (1278.84), with a break above that exposing the 38.2% Fib at 1296.06. Alternatively a move through immediate support aims for 1212.40.
CRUDE OIL – Prices broke resistance at $94.87, the 50% Fibonacci retracement level. The bulls now aim to challenge the 61.8% boundary at $99.57, although early signs of negative RSI divergence suggest upside momentum is fading and hint a blow-off top may be in the works. The 50% Fib level as been recast as near-term support.
GOLD – Prices are testing resistance at $1794.76, the 76.4% Fibonacci extension level. A break higher exposes the measured extension target at $1829.85. Near-term support lines up at $1773.05, the 61.8% barrier reinforced by a minor rising trend line, with a break below that targeting $1755.50.
US DOLLAR – Prices continue to consolidate in a familiar range between 9692 and 9796. A break higher sees initial resistance at 9904. Alternatively, a push through support exposes 9599.
4hr Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow me on Twitter at @IlyaSpivak
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