Talking Points:
US Dollar Back on the Offensive as Prices Set Five-Year High
S&P 500 Probes Support, Threatens Monthly Uptrend Reversal
Gold at 3-Week Low, Crude Oil Hits Levels Unseen Since 2009
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Buyers are back on the offensive, with prices pushing to a new five-year high. A daily close above the 23.6% Fibonacci expansion at 11391 exposes the 38.2% level at 11457. Alternatively, a reversal below the 14.6% Fib at 11350 clears the way for a test of the November 27 low at 11284.
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 ANALYSIS – Prices are probing below support at the bottom of a rising channel set from early November (2061.70), with a breach of this barrier on a daily closing basis exposing the 14.6% Fibonacci retracement at 2038.40. Near-term resistance is at 2075.90, the November 26 high, followed by the channel top at 2087.90.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices turned lower as expected, completing a Rising Wedge chart pattern. A daily close below the 23.6% Fibonacci expansion at 1156.94 exposes the 1125.55-1130.10 area (November 7 low, 38.2% level). Alternatively, a turn above the 14.6% Fib at 1176.29 targets the November 21 high at 1207.68.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices continue to face heavy selling pressure, dropping to the weakest level in five years. A daily close below the 38.2% Fibonacci expansion at 66.71 exposes the 50% level at 62.12. Alternatively, a reversal above the 23.6% Fib at 72.40 aims for the 14.6% expansion at 75.90.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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Crude Oil Sinks to Lowest Since 2009, SPX 500 Flirting with Reversal
The US dollar demonstrated mixed performance this week. The currency fell against the euro, gained versus the Japanese yen and ended the week flat against the Great Britain pound. The month of November, on the other hand, was very good for the US currency as it gained against most major peers.
The euro fell against the US dollar on Friday, extending its Thursday’s drop. The currency was stronger against its other major counterparts, rallying against the Great Britain pound and the Japanese yen.
The Canadian dollar ended today’s session with losses even though Canada’s economy demonstrated growth in September following the previous month’s decline. It looks like the currency remains under pressure from yesterday’s OPEC announcement.
The Australian dollar followed the footsteps of its New Zealand counterpart, failing to rally against the US dollar yesterday and trimming today’s losses. The currency also rallied versus the Japanese yen.
The New Zealand dollar fell against its US peer today despite positive domestic reports but trimmed its losses by now. Yesterday, the currency attempted to rally but failed. The kiwi managed to gain on the Japanese yen.
US dollar index is heading higher today, gaining ground as commodities fall. While the US dollar is mixed in trading with individual currencies, the dollar index, which measures the greenback’s performance against a basket of currencies, is heading higher.