Thursday, August 28, 2014

Gold Jumps to One-Week High as SPX 500 Chart Setup Warns of Pullback




Talking Points:



  • US Dollar Signals Near-Term Top Forming Below Six-Month High


  • S&P 500 Chart Positioning Hints a Downturn May Be in the Cards


  • Gold Moves to One-Week High, Crude Oil Struggling to Advance


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 near-term top after forming a bearish Evening Star candlestick pattern. A daily close below the 14.6% Fibonacci retracementat 10618 exposes the 23.6% level at 10591. Alternatively, a reversal above the 14.6% Fib expansion at 10657 opens the door for a challenge of the 23.6% threshold at 10683.


Gold Jumps to One-Week High as SPX 500 Chart Setup Warns of Pullback


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 ANALYSISPrices put in a bearish Hanging Man candlestick below resistance at 2006.80, the 61.8% Fibonacci expansion, hinting a downswing may be ahead. Near-term support is in the 1985.30-91.40 area, marked by the July 24 high and the 50% level, with a break below that on a daily closing basis exposing the 38.2% Fib at 1963.70. Alternatively, a move above resistance aims for channel floor support-turned-resistance at 2013.00, followed by the top of the index’s long-term uptrend at 2027.50.


Gold Jumps to One-Week High as SPX 500 Chart Setup Warns of Pullback


Daily Chart – Created Using FXCM Marketscope 2.0



GOLD TECHNICAL ANALYSIS – Prices broke above resistance at 1282.47, the 61.8% Fibonacci expansion, exposing the 50% level at 1290.15. A further push beyond that aims for the 38.2% Fib at 1297.82. Alternatively, a turn back below 1282.47 opens the door for a challenge of the 76.4% expansion at 1272.98.


Gold Jumps to One-Week High as SPX 500 Chart Setup Warns of Pullback



Daily Chart – Created Using FXCM Marketscope 2.0



CRUDE OIL TECHNICAL ANALYSIS – Prices are attempting to inch higher as expected after showing positive RSI divergence.A daily close above the 14.6% Fibonacci retracement at 103.19 initially exposes the 23.6% level at 104.50. Near-term support is at 101.05, the August 19 swing low.


Gold Jumps to One-Week High as SPX 500 Chart Setup Warns of Pullback


Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com



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Gold Jumps to One-Week High as SPX 500 Chart Setup Warns of Pullback

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