Tuesday, September 30, 2014

Gold Aiming to Extend Down Move After Hitting 9-Month Low




Talking Points:



  • US Dollar Sets 4-Year High, Working on 7th Straight Up Day


  • S&P 500 Edging Downward as Sellers Eye September Bottom


  • Gold Aims to Extend Down Move After Hitting a 9-Month Low


Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **



US DOLLAR TECHNICAL ANALYSIS – Prices are working on a seventh consecutive advance, extending to a new four-year high. A daily close above the 38.2% Fibonacci expansion at 11130 exposes the 50% level at 11200. Alternatively, a reversal back below the 23.6% Fib at 11043 clears the way for a test of rising trend line support at 11016.


Gold Aiming to Extend Down Move After Hitting 9-Month Low


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 continue to edge lower with a falling channel. Near-term support is 1963.40, the September 29 swing low, with a break below that on a daily closing basis exposing the channel floor at 1941.60. Alternatively, a move above the channel top at 1976.60 targets the 23.6% Fibonacci expansion at 1994.60.


Gold Aiming to Extend Down Move After Hitting 9-Month Low


Daily Chart – Created Using FXCM Marketscope 2.0



GOLD TECHNICAL ANALYSIS – Prices resumed its down trend after a brief consolidative period, with sellers now aiming to test the 23.6% Fibonacci expansion at 1198.47. A break below that on a daily closing basis exposes the 1178.23-86 area marked by the 38.2% level and the December 31 2013 low. Alternatively, a turn back above the 14.6% Fib at 1210.94 aims for range top resistance at 1225.38.


Gold Aiming to Extend Down Move After Hitting 9-Month Low



Daily Chart – Created Using FXCM Marketscope 2.0



CRUDE OIL TECHNICAL ANALYSIS – Prices edged past support at 95.11, the 23.6% Fibonacci expansion, to challenge falling channel floor support at 94.14. A break below that exposes the 38.2% level at 92.34. Alternatively, a turn back above the 95.11 eyes the 96.73-82 area, marked by the April 18 2013 low and the 14.6% Fib.


Gold Aiming to Extend Down Move After Hitting 9-Month Low


Daily Chart – Created Using FXCM Marketscope 2.0



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



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Gold Aiming to Extend Down Move After Hitting 9-Month Low

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