Forex Analysis: US Dollar, Benchmark Assets Stall in Quiet Holiday Trade

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By Ilya Spivak | November 23, 2012 8:59 PM EST

DailyFX

THE TAKEAWAY: The US Dollar and benchmark assets tracking commodities and equities have stalled near familiar technical levels in quiet trade forced by the US Thanksgiving holiday.

US DOLLAR TECHNICAL ANALYSIS- Prices are consolidating above support at the 23.6% Fibonacci retracement (9993), a barrier reinforced by a rising trend line set from the October 17 low (10009). Initial resistance is at 10071, the November 16 high, with a push above that targeting the 38.2% Fib expansion at 10123. Alternatively, a drop below 9993 exposes the 38.2% Fib at 9945.

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS - Prices rebounded as expected after completing Bullish Engulfing candlestick pattern. The prices have now edged past the 38.2% Fibonacci retracement at 1392.80, exposing the 1400 figure and the 50% level at 1408.50. Near-term support is at 1373.40, the 23.6% retracement, with a drop below that aiming to challenge the November 16 low at 1342.10.

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS - Prices may be carving a bullish Inverse Head and Shoulders chart pattern. Confirmation requires a close above neckline resistance at 1737.28, 23.6% Fibonacci retracement. This would imply a measured upside target at 1802.06. Near-term support lines up at 1688.65, the 38.2% Fib. This is reinforced by the 1700 figure and a rising trend line at 1691.82. A push below the latter level exposes the 50% retracement at 1642.57.

Daily Chart - Created Using FXCM Marketscope 2.0

Want to learn more about RSI? Watch this Video.

CRUDE OIL TECHNICAL ANALYSIS- Prices pulled back from resistance at 89.48, the 23.6% Fibonacci expansion, after breaking above a falling trend line set from the September 14 high (now at 85.31). A drop below that exposes the November 7 low at 84.04. Alternatively, a push above resistance targets the 38.2% level at 92.88.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

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