THE TAKEAWAY: Last week’s sharp rally has brought the S&P 500 to challenge critical resistance while the US Dollar revisits a familiar support level.
S&P 500 – Prices are testing resistance at 1363.90, with a break higher exposing the next upside barrier at 1392.10. Near-term support lines up in the 1334.40-41.90 area. A break below this barrier exposes the June 25 close at 1313.10.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices are testing resistance at 85.11, the 23.6% Fibonacci retracement, with a break higher exposing the 38.2% level at 89.97 (a barrier reinforced by the psychologically significant 90.00 figure). Near-term support lines up at 81.19, with a break below that exposing the June 21 close at 78.11.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices launched higher from support at 1551.50, the 61.8% Fibonacci expansion, to once again challenge the 1600/oz figure. A break above the 23.6% Fib at 1606.74 exposes falling trend line resistance at 1622.41. The 38.2% expansion at 1585.44 now marks near-term support.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices are testing familiar support in the 10032-81 region, with a break lower exposing a major rising trend line set from early August, now at 9932. Near-term resistance lines up at 10134, the October 4 2011 swing high.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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