Talking Points:
- US Dollar Technical Positioning Warns a Top May Be Set
- SPX 500 Falls Short of December High, Snaps 2-Day Bounce
- Crude Oil Resumes Selloff, Poised to Expose $46.00 Figure
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices turned lower as expected, with a bearish Evening Star candle pattern of deeper losses in the cards ahead. Near-term support is at 11599, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 11527. Alternatively, a turn above the 23.6% Fib expansion at 11699 clears the way for a test of the 38.2% threshold at 11796.
Daily Chart - Created Using FXCM Marketscope
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices declined as expected after putting in a bearish Evening Star candlestick pattern. Near-term support is at 1990.10, the January 6 low, with a break below that exposing the December 16 bottom at 1968.30. Alternatively, a reversal above the January 9 high at 2068.60 targets the December 29 top at 2092.60.
Daily Chart - Created Using FXCM Marketscope
GOLD TECHNICAL ANALYSIS – Prices have resumed pushing upward, with a break above the 61.8% Fibonacci expansion at 1233.62 exposing the 76.4% level at 1249.39. Alternatively, a reversal below the 50% Fib at 1220.88 aims for the 38.2% expansion at 1208.13.
Daily Chart - Created Using FXCM Marketscope
CRUDE OIL TECHNICAL ANALYSIS – Prices have resumed moving lower, with a daily close below the 61.8% Fibonacci expansion at 49.37 threatening to expose the 76.4% level at 46.00. Alternatively, a turn above the 50% Fib at 52.10 targets the 38.2% expansion at 54.20.
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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