US Dollar Chart Setup Hints at Rebound as S&P 500 Stalls at Resistance
THE TAKEAWAY – US Dollar technical positioning hints the safe-haven currency may recover into the week-end as the S&P 500 stalls at a key resistance barrier.
S&P 500 – Prices put in a Doji candlestick below resistance at a rising trend line set from the October 27 high, pointing to indecision and hinting a reversal lower may be ahead. Resistance is reinforced by the 14.6% Fibonacci extension at 1251.33. Initial support lines up at 1225.71, the 23.6% Fib. Alternatively, a break higher exposes the October high at 1292.90.
CRUDE OIL – Prices put in a bearish Harami candlestick pattern below support-turned-resistance at the bottom of a rising channel set from early October, hinting a reversal lower may be ahead. Initial support remains at 94.56. Near-term resistance is 103.35, the November 17 high.
GOLD – Prices put in a Doji candlestick below resistance at 1746.08, the 14.6% Fibonacci extension, reflecting indecision and pointing to a possible reversal lower ahead. Near-term support lines up at 1711.13, the 23.6% level, a boundary reinforced by a rising trend line underpinning price action since late September. Alternatively, a break higher exposes the November 8 high at 1802.77.
US DOLLAR – Prices put in an Inverted Hammer candlestick above support in the 9823-9833 region marked by the former neckline of a Head and Shoulders bottom completed in mid-November and the 38.2% Fibonacci retracement level respectively, hinting a bounce may be ahead. Initial resistance stands at 9925, the 23.6% Fib. A break lower sees initial support at 9759.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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