US Dollar Outlook Clouded as Prices Decouple from S&P 500 | Learn Forex | GoLearnForex.com

THE TAKEAWAY – Markets have turned choppy ahead of Friday’s Jackson Hole summit as the S&P 500, crude oil, gold and US Dollar prices deviate from familiar risk on/off dynamics.

S&P 500 – Prices are approaching resistance at 1183.74, the intersection of the 38.2% Fibonacci retracement level and the midline of a rising channel set from the early August swing low. A break above this boundary exposes the 50% boundary at 1215.75. Initial support stands at 1144.13, the 23.6% Fib.

CRUDE OIL – Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at $85.83, the 23.6% Fibonacci retracement level, hinting a move lower is ahead. Initial support lines up at $83.89, the 38.2% Fib. Alternatively, a break higher past initial resistance exposes 50% retracement of the decline from the drop from the August 27 swing high at $88.15.

GOLD – Prices put in a dramatic Bearish Engulfing candlestick pattern below the $1900/oz figure and broke through support at the intersection of a rising trend line and the 23.6% Fibonacci retracement level ($1809.48). Negative RSI divergence reinforces the case for a downside scenario. The next layer of support is at $1746.19, the 38.2% retracement. The 23.6% Fib has been recast as near-term resistance.

US DOLLAR – Prices put in a bullish Piercing Line candlestick pattern above support at 9407, the 76.4% Fibonacci retracement level, and broke back above the 61.8% Fib at 9459. The latter level has now been recast as near-term support, with continued gains targeting the 50% Fib at 9502.

Created Using FXCM Marketscope 2.0

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