S&P 500, Crude Oil Positioning Hints US Dollar Rebound Ahead
S&P 500 – A candle in Star position below the 1200 figure hints a pullback may be ahead, although confirmation is needed on a daily close at least below 1179.80 on the current candle. Initial support lines up at the top of a falling channel set from late August, a former resistance, now at 1175.20.
CRUDE OIL – Prices put in a Spinning Top candlestick below resistance at the top of a falling channel set from early May, pointing to ebbing conviction behind bullish momentum and hinting a reversal lower may be ahead. Initial support lines up at $83.65, with a break below that exposing $79.58.
GOLD – Unchanged from yesterday: “Prices remain locked in a choppy range between the 14.6% and 38.2% Fibonacci retracements at 1589.14 and 1680.78 respectively. A break below immediate support exposes the September 26 low at 1532.45. Alternatively, a push higher through the range top exposes the 50% Fib at 1726.60.”
US DOLLAR – Prices found support near 9852, the 38.2% Fibonacci retracement, with a bounce from here seeing initial resistance at the 23.6% level (9960). Alternatively, renewed selling through immediate support exposes the 50% Fib at 9765.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail email@example.com. Follow me on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.