US Dollar Setup Shows Signs of Weakness, Bullish Bias Still Favored
S&P 500 – Prices are stalling near minor resistance-turned-support at $1204.40, with a break below exposing the next layer at $1176.40. Broadly speaking, consolidation within a Flag chart formation points to bearish continuation, with the resumption of the larger down move confirmed on a break below the Flag bottom (now at $1136.32).
CRUDE OIL – Prices are perched just above support at $84.61 – the 23.6% Fibonacci extension level – with a break below this boundary exposing the 38.2% level at $80.97 and validating the longer-term bearish implications of a Flag consolidation chart pattern. Initial resistance remains at the top of a falling channel set from early May, now squarely at the $89.00 figure.
GOLD – Prices continue working towards firm validation of a double top below the $1900/oz figure marked by a pair of Bearish Engulfing candlestick patterns. Near-term support remains in the $1702.90-1745.25 range, with resistance a rising trend line set from early June (now at $1838.16) that had previously acted as support.
US DOLLAR – Prices are testing rising trend lien support established from late August, with negative RSI divergence warning of waning bullish momentum. A break lower sees initial support in the 9657-9681 region. Near-term resistance line up at 9798.
8hr Chart - Created Using FXCM Marketscope 2.0
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