Talking Points:
- US DollarContinues to Tread Water in Familiar Territory
- S&P 500Races Upward as Aggressive Recovery Continues
- GoldHits Six-Week High, Crude Oil Bounce Cues Remain
US DOLLAR TECHNICAL ANALYSIS – Prices declined as expected after putting in a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 10882, marked by a falling channel bottom, with a break below that on a daily closing basis exposing the 38.2% Fibonacci retracement at 10845. Alternatively, a reversal above the channel top at 11035 opens the door for a challenge of 11143, the October 3 high.
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices continued to correct higher, moving to challenge resistance at 1944.50 marked by the intersection of the 61.8% Fibonacci retracement and a falling trend line set from mid-September. A break above this barrier on a daily closing basis exposes the 76.4% level at 1974.10. Alternatively, a turn below the 50% Fib at 1920.50 targets the 38.2% retracement at 1896.50.
GOLD TECHNICAL ANALYSIS – Prices advanced as expected after putting in a bullish Piercing Line candlestick pattern. Buyers now aim to challenge the 50% Fibonacci retracement at 1264.01, with a break above that on a daily closing basis exposing the 61.8% level at 1283.14. Alternatively, a turn back below the 38.2% Fib at 1244.88 targets the 23.6% retracement at 1221.20.
CRUDE OIL TECHNICAL ANALYSIS – Prices put in a Bullish Engulfing candlestick pattern, hinting a bounce may be ahead. A break above the 14.6% Fibonacci retracement at 87.67 exposes channel floor support-turned-resistance at 88.45. Near-term support is at 82.88, the October 15 low.
