THE TAKEAWAY – The Dollar broke a technical resistance level as the S&P 500 slipped below the 1200 figure ahead of the much-anticipated US Employment report.
S&P 500 – Prices put in a Doji candlestick below resistance at 1221.80 and turned lower, taking out the midline of a rising channel set from the August 9 swing low. Bears are now probing below the 1200.00 figure with a daily close beneath this boundary exposing 1176.40. The 1221.80 level remains as near-term resistance.
CRUDE OIL – Positioning is little changed from yesterday after prices put in a second Doji candlestick below support-turned-resistance at $89.59, the June 27 wick low, pointing to indecision and hinting bullish momentum may be fading. A reversal lower from here sees initial support at a rising trend line set from the August 9 swing low, now at $84.20. Alternatively, a break higher sees resistance at a multi-month channel top established from early May ($92.35).
GOLD – Positioning is unchanged from yesterday: “Prices appear to be forming a bearish Head and Shoulders top below the $1900/oz figure. The setup requires confirmation on a break the formation’s would-be neckline at $1732.54 and would expose a measured target at $1553.18. Near-term support lines up at $1808.22, with a break below that exposing $1788.09. Initial resistance stands at $1840.75.”
US DOLLAR – Prices took out resistance at 9459, the 61.8%Fibonacci retracement level, after putting in a bullish Piercing Line candlestick pattern above support at the 76.4% level (9407). The bulls are now targeting 9502, 50% Fib. The 61.8% level has now been recast as support.
Created Using FXCM Marketscope 2.0
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