US Market Recap: Equities and Currencies safe for now?

USD Basket 1M

USD increased strength tremendously, hitting 1 month high. However, Cable and Fiber managed to stay above 1.30 and 1.60 respectively, with Aussie keeping above 1.03 as well.

S&P 500 Futures Daily

The 3rd peak has formed. Price is still strongly supported around 1,420, close to the peak formed in August. From here on, price could potentially form a Triple-Top or bounce from this support back into the ranging channel. Important price level to watch out for would be around 1,435-45 which is another soft support/resistance for this consolidation range.

Dow Jones Industrial Average Futures Daily

Similar to S&P500, US30 showing an inverse hammer candlestick, hinting at rebound upwards off the rising trendline and previous support/resistance around 13,250. Due to strong correlation with S&P500, we cannot rule out the possibility of a bearish breakout should S&P500 push lower, no matter what the candlestick says right now.

Gold/USD H4

Price potentially forming an arc similar to 15th to 19th Oct, with current peak hitting significant support turned resistance at 1,730. Price could also find support around 1,725 which was the bottom of consolidation range between 7th Sep to 13th Sep (before QE3 announcement). If price break below current levels, we could see a potential shift in sentiment/trend in Gold as traders see price breaking the post QE3 arc.

Bottomline:

USD strengthened on safe haven flows as Equities and Gold collapsed. However, Equities and major currencies are still sitting on major support.

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