THE TAKEAWAY - A near-term S&P 500 recovery threatens to undermine the safe-haven US Dollar. Crude oil set to rise with risk appetite while gold looks set for a pullback.
S&P 500 - Prices found support at 1116.30 - the August 8 closing low - and bounced higher, with the bulls now poised to challenge the 23.6% Fibonacci extension level at 1144.55. A break above this boundary exposes the 14.6% Fib at 1168.95. Alternatively, a reversal lower though current support aims for the August 9 session low at 1080.10.
CRUDE OIL - The rebound from 38.2% Fibonacci extension support at $79.43 continues, with prices taking out the 23.6% Fib at $83.07 and now probing above the 14.6% level $85.32. Sustained upside pressure exposes the next layer of resistance at $88.15. The 23.6% Fib has been recast as near-term support.
GOLD - Prices are turning sharply lower from resistance at an Andrew's pitchfork top, probing below resistance turned support at $1884.70 (the 76.4% Fibonacci extension level). Negative RSI divergence bolsters the case for a pullback. The boundary is reinforced by the pitchfork's midline, with a push lower targeting the 61.8% extension at $1853.80. Near-term resistance stands at $1917.63.
US DOLLAR - Broadly speaking, positioning is little changed from yesterday. Prices continue to stall between 9502 and 9459, the 50% and 61.8%Fibonacci retracement levels. A daily-close break of the lower boundary exposes the 76.4% Fib at 9407 while the resumption of upward momentum targets the 38.2% level at 9544. On balance, anything shy of penetration beneath double bottom support at 9336 keeps the near-term bias bullish.
Created Using FXCM Marketscope 2.0