Gold Recovery May Be Ahead, US Dollar Vulnerable to Pullback
DailyFX.com -
Talking Points:
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US Dollar Technical Positioning Hints a Pullback May Be Brewing
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S&P 500 Losing Streak Continues as Prices Drop for a Third Session
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Gold Chart Setup Hints at Rebound, Crude Oil Still Treading Water
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices may be carving out a top as negative RSI divergence warns of ebbing upside momentum. A daily close below rising trend line support at 10931 exposes the 14.6% Fibonacci retracement at 10869. Alternatively, a reversal above the 14.6% Fib expansion at 10957 clears the way for a test of the 23.6% threshold at 11008.
Daily Chart - Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices moved lower to challenge support at 1973.20, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 1958.10. Alternatively, a reversal back above the 23.6% Fib at 1991.90 targets the 14.6% expansion at 2003.40.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a bullish Morning Star candlestick pattern, hinting a move higher may be ahead. A break above the 14.6% Fibonacci retracement at 1227.91 on a daily closing basis exposes the 23.6% level at 1240.26. Near-term support is at 1207.88, the September 22 low.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices continue to tread water above support at 96.73, the April 2013 low. Near-term resistance is at 99.47, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 101.18. Alternatively, a breach downward aims for the 23.6% Fib expansion at 95.11.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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