Talking Points:
- US Dollar Sinks to Chart Support Before FOMC Announcement
- S&P 500 Moves to One-Month High, Eyes 2000 Threshold Anew
- Gold Pauses After Breakdown, Crude Oil Mired in Congestion
US DOLLAR TECHNICAL ANALYSIS – Prices paused to consolidate following a breakout that seems to mark longer-term uptrend resumption. A daily close above the 11102-43 area marked by the 23.6% Fibonacci expansion and the October 3 high exposes the 38.2% level at 11216. Alternatively, a turn below the intersection of channel top resistance-turned-support and the 23.6% Fib retracement at 10959 clears the way for a test of the 38.2% threshold at 10845.
S&P 500 TECHNICAL ANALYSIS – Prices advanced to a one-month high to test resistance at 1987.70, the 23.6% Fibonacci expansion. A break above that on a daily closing basis exposes the 38.2% level at 2010.10. Alternatively, a reversal below the 14.6% Fib at 1973.80 aims for the October 27 low at 1951.40.
GOLD TECHNICAL ANALYSIS – Prices turned lower as expected after putting in a bearish Evening Star candlestick pattern. Sellers now aim to challenge the 23.6% Fibonacci expansion at 1216.87, with a break below that on a daily closing basis exposing the 38.2% level at 1193.16. Alternatively, a reversal back above the 14.6% Fib at 1231.49 aims for the 1248.57-55.20 area marked by a falling trend line set from mid-July and the October 21 high.
CRUDE OIL TECHNICAL ANALYSIS – Prices put in a Bullish Engulfing candlestick pattern, hinting a bounce may be ahead. A break above 87.67, the intersection of the 14.6% Fibonacci retracement and channel floor support-turned-resistance, exposes the 23.6% level at 90.62. Near-term support is at 82.88, the October 15 low.
