THE TAKEAWAY – The safe-haven US Dollar is testing critical technical support, with a bounce higher hinted as S&P 500 positioning cautiously points to a bearish reversal.
S&P 500 – Prices put in a bearish Shooting Star candlestick below resistance in the 1212.40-1225.71 region between the November 1 low and the 23.6% Fibonacci extension level, hinting sellers may be set to retake momentum. A break below initial support at 1184.14, the 38.2% Fib, confirms a downward reversal, exposing the 50% level at 1150.55.
CRUDE OIL – Prices are testing the top a range that has confined trade for the past two weeks at 100.26, with a break higher exposing the November 17 high at 103.35 followed by trend line support-turned-resistance at 103.50. Initial range bottom support remains at 94.56.
GOLD – Prices are testing above resistance at 1718.47, the 38.2% Fibonacci retracement level reinforced by former support at a rising trend line set from the September 26 swing long (now at 1728.23). A break higher from here exposes the 50% level at 1734.57. Near-term support lines up at 1698.56, the 23.6% Fib.
US DOLLAR – Prices are testing are testing critical support at 9925, the 23.6% Fibonacci retracement level reinforced by a rising trend line support set from the October 31 low. A break lower from here exposes the 38.2% level at 9883. Near-term resistance stands at 10084, the year-to-date closing high, with a break above that targeting 10237.
Daily 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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