US Dollar Positioned to Rise as S&P 500 Stalls at Range Resistance
S&P 500 – Prices continue to stall above support at 1197.29, the 23.6% Fibonacci extension level, with a Bearish Engulfing candlestick pattern identified on Monday still suggesting that the path of least resistance favors the downside. A break below initial support exposes the 38.2% level at 1173.71. Near term resistance is in the 1230.90 – 1257.30 region.
CRUDE OIL – Prices put in a Bearish Engulfing candlestick pattern below resistance at 90.10, arguing for a downward reversal from here. Initial support stands at 84.61, the 23.6% Fibonacci extension level. A break below that exposes the 38.2% Fib at 80.97.
GOLD – Prices are testing through support at the bottom of a rising channel carved out since late September, with a break lower exposing the 23.6% Fibonacci extension at 1603.16. Initial resistance is at 1638.11, the 14.6% level, as well as the October 19 session close at 1659.90.
US DOLLAR – Prices put in a Bullish Engulfing candlestick pattern following a re-test of falling trend line resistance-turned-support established from the October 4 swing high. Prices are now testing above the 14.6% Fibonacci retracement at 9761, with a break above exposing the 23.6% barrier at 9800.
4hr Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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