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US Dollar Recovery Hinted Ahead as S&P 500 Turns Lower
Written by article default Thursday, 05 January 2012 10:14
THE TAKEAWAY – US Dollar and S&P 500 technical positioning hints the safe-haven currency may be preparing to stage a recovery amid renewed risk aversion.
S&P 500 – Prices put in a bearish Hanging Man candlestick below resistance at 1292.90, the October 27 high, hinting a move lower is ahead. Initial support stands at 1265.30, with a break below that targeting a rising trend line now at 1237.40.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices put in a bearish Hanging Man candlestick below resistance at 103.35, the November 17 high, warning a double top may be in the works. Near-term support lines up at 101.28. Alternatively, a break higher exposes 106.05.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices are testing support-turned-resistance at the bottom of a falling channel set from early November, with a break above this boundary exposing 1677.05. However, a candle in Star position hints a reversal lower may be brewing, although confirmation is absent for now. Near-term support lines up at 1574.72.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices put in a bullish Inverted Hammer candlestick above support at 9823 – a former Head & Shoulders bottom neckline – hinting an upswing may be ahead. The greenback is now probing above near-term support at 9897, with a daily close above this level initially exposing 9993.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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