THE TAKEAWAY: The US Dollar has soared to a six-month high while the S&P 500 is showing signs of a looming downward reversal after a test of the 1500 figure.
US DOLLAR TECHNICAL ANALYSIS– Prices are testing resistance at 10170, marked by the intersection of a rising channel top set from mid-September and the 76.4% Fibonacci expansion. A break higher exposes the 100% level at 10248. Near-term trend line support is at 10086. A reversal below that aims for the 38.2% Fib retracement at 10066.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at 1495.70, the 100% Fibonacci expansion, hinting a move lower is ahead. Near-term support is in the 1470.40-74.90 area marked by the September 14 2012 high and the 76.4% Fib. A reversal below that targets the 61.8% expansion at 1454.50. Alternatively, a break above 1495.70 aims for the 123.6% level at 1531.30.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are turning lower resistance at 1690.39, the 38.2% Fibonacci retracement. Trend line resistance-turned-support is in the 1651.68, with a break below that aiming for a falling channel bottom at 1607.37. Alternatively, a move above 1690.39 targets the channel top at 1704.95.
Daily Chart - Created Using FXCM Marketscope 2.0
Want to learn more about RSI? Watch this Video.
CRUDE OIL TECHNICAL ANALYSIS– Prices put in a Bearish Engulfing candlestick pattern, hinting a move lower may be ahead. Near-term rising trend line support is at 95.24. A break below that exposing 94.61. Resistance is at 97.41, with a push above that aiming for 94.61.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, please CLICK HERE
