THE TAKEAWAY: The S&P 500 is accelerating upward while US Dollar technical positioning points to losses ahead for the go-to safe haven currency.
S&P 500 – Prices are accelerating higher after putting in a Bullish Engulfing candlestick pattern above support at a rising trend line set from late July. Initial resistance lines up at 1466.10, with a break above that targeting the top of a channel established from the June 4 low (now at 1492.20). Alternatively, a break below trend line support (now at 1447.50) exposes 1422.40.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices reversed sharply higher having found support at 87.70, the 38.2% Fibonacci expansion. The bulls now aim to challenge the 23.6% level at 92.56. A push above that exposes the underside of a rising channel set from early July, now at 96.83. Alternatively, a reversal through support targets the 50% expansion at 83.76.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices are testing resistance in the 1790.55-1802.80 area marked by the November 2011 and February 2012 swing highs. A break higher exposes 1850.00 and the 1900.00 figure. Initial support stands at a rising trend line set from mid-August, now at 1772.27. A reversal below that targets major trend line resistance-turned-support at 1746.79.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices put in a Bearish Engulfing candlestick pattern below resistance in the 9928-38 area, hinting a move lower is ahead. Initial rising trend line support is at 9810, with a break below that exposing the September 14 close at 9773. Alternatively, a push above resistance targets the top of a falling channel established from the June 1 swing high, now at 9962.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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