The US Dollar may come under pressure amid ebbing safe-haven demand as S&P 500 chart positioning hints a corrective upswing may be ahead.
THE TAKEAWAY:The US Dollar may come under pressure amid ebbing safe-haven demand as S&P 500 chart positioning hints a corrective upswing may be ahead.
US DOLLAR – Prices remain wedged between resistance-turned-support at the upper boundary of a falling channel set from the June 1 high (9889) and the 38.2% Fibonacci retracement at 9963. A break higher exposes the 50% Fib at 10032. Alternatively, a drop below support targets rising trend line support at 9864.
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Daily Chart – Created Using FXCM Marketscope 2.0
S&P 500 – Prices put in a Bullish Engulfing candlestick pattern above support at the 1400 figure, a barrier reinforced by the 38.2% Fibonacci retracement at 1394.30, hinting an upswing is ahead. Initial resistance lines up in the 1424.90-1425.10 area, with a break above that exposing the underside of a rising channel set from early June (now at 1442.20). Alternatively, a reversal through 1394.30 targets the 50% Fib at 1369.40.
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Daily Chart – Created Using FXCM Marketscope 2.0
GOLD – Prices put in a Bullish Engulfing candlestick pattern above support at 1693.06, the 38.2% Fibonacci retracement, hinting a bounce may be ahead. Initial resistance lines up at a falling trend line set from the October 5 swing high (1707.74). A break above that exposes the 1732.33-35.65 area, marked by a horizontal pivot level and the 23.6% Fib. Alternatively, a drop below support targets the 50% level at 1661.32.
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Daily Chart – Created Using FXCM Marketscope 2.0
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CRUDE OIL – Prices are stalling above the 85.00 figure, a barrier reinforced by the 50%Fibonacci expansion at 83.76. Initial resistance lines up at 87.66, the 38.2% Fib, with a break above that targeting a falling trend line set from late September (now at 91.48). Alternatively, a break below 83.76 targets the 80.00 figure and 61.8% level at 79.84.
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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
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This article (Forex Analysis: Dollar at Risk as S&P 500 Chart Setup Hints at Rebound) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.