US Dollar Breaks Out of August Range as S&P 500 Futures Sink
THE TAKEAWAY – The US Dollar broke higher out of the range that confined prices through August as S&P 500 futures declined, stocking safe-haven demand.
S&P 500 – Prices took out support at 1166.31 – the 23.6% Fibonacci extension level, to challenge the bottom of a Flag chart formation carved out since early August. The setup is indicative of continuation, which in this case argues for a bearish scenario. Support is reinforced by the proximity of the 38.2% Fib at 1126.70, with a break below the latter junction exposing 1094.68. The 23.6% extension has been recast as near-term resistance.
CRUDE OIL – Prices broke support at a rising trend line connecting major lows since August 9 and slipped beneath the 23.6% Fibonacci extension level at $83.92. The bears now target the 38.2% Fib at $80.28. The 23.6% extension along with the rising trend line (now at $85.22) mark near-term resistance.
GOLD – Prices are approaching key resistance at $1912.05, the August 23 wick high. The barrier is reinforced by the 76.4% Fibonacci extension at $1909.75. A break above these levels exposes the measured Fibonacci extension target at $1973.79. The 61.8% level at 1870.14 lines up as near-term support.
US DOLLAR – Prices broke out of the range carved out since early August, taking out the 38.2% Fibonacci retracement at 9544. The bulls now aim to challenge the 23.6% level at 9596 before moving to threaten key falling trend line resistance connecting major swing tops since late May (now at 9650). The 38.2% level has been recast as near-term support.
Created Using FXCM Marketscope 2.0
For real time news and analysis, please visit http://www.dailyfx.com/real_time_news
To receive future articles by email, please contact Ilya at email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.