DailyFX

Dollar at Key Resistance, SPX 500 Struggling with Follow-Through

Ilya Spivak

Talking Points

  • US Dollar Testing Pivotal Channel Top Resistance Threshold

  • S&P 500 Still Struggling with Follow-Through on Topping Setup

  • Gold Loses Grip on 1300 Figure, Crude Oil Poised to Bounce

Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **

US DOLLAR TECHNICAL ANALYSIS – Prices are testing resistance in the 10586-604 area, marked by the top of a falling channel established from early July and the 38.2% Fibonacci retracement.A break above that exposes the 50% Fib at 10682. Alternatively, a turn below support at 10509, the 23.6% Fib, initially targets a falling trend line set from September (now at 10473).

Forex_Dollar_at_Key_Resistance_SPX_500_Struggles_with_Follow-Through_body_Picture_5.png, Dollar at Key Resistance, SPX 500 Struggling with Follow-Through
Forex_Dollar_at_Key_Resistance_SPX_500_Struggles_with_Follow-Through_body_Picture_5.png, Dollar at Key Resistance, SPX 500 Struggling with Follow-Through

Daily Chart - Created Using FXCM Marketscope 2.0

** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.

S&P 500 TECHNICAL ANALYSIS – Prices are struggling to build lower after putting in a Bearish Engulfing candlestick pattern but the pattern remains valid absent a daily close above 1778.90, the October 30 high. Initial support is at 1747.70, the 23.6% Fibonacci retracement, with a break below that targeting the 38.2% level at 1728.50.

Forex_Dollar_at_Key_Resistance_SPX_500_Struggles_with_Follow-Through_body_Picture_6.png, Dollar at Key Resistance, SPX 500 Struggling with Follow-Through
Forex_Dollar_at_Key_Resistance_SPX_500_Struggles_with_Follow-Through_body_Picture_6.png, Dollar at Key Resistance, SPX 500 Struggling with Follow-Through

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices broke below support at 1292.15, the 38.2% Fibonacci expansion, exposing the 50% level at 1270.67. A further push beneath that eyes the 61.8% Fib at 1249.18. Alternatively, a turn back above 1292.15 targets the 23.6% expansion at 1318.73.

Forex_Dollar_at_Key_Resistance_SPX_500_Struggles_with_Follow-Through_body_Picture_7.png, Dollar at Key Resistance, SPX 500 Struggling with Follow-Through
Forex_Dollar_at_Key_Resistance_SPX_500_Struggles_with_Follow-Through_body_Picture_7.png, Dollar at Key Resistance, SPX 500 Struggling with Follow-Through

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS– Prices put in a Bullish Engulfing candlestick pattern at the bottom of a falling channel set from early September, hinting a bounce is ahead. Near-term trend line resistance is at 94.41, with a break above that targeting the channel top at 97.40. Initial support is at 93.09, the November 5 low.

Forex_Dollar_at_Key_Resistance_SPX_500_Struggles_with_Follow-Through_body_Picture_8.png, Dollar at Key Resistance, SPX 500 Struggling with Follow-Through
Forex_Dollar_at_Key_Resistance_SPX_500_Struggles_with_Follow-Through_body_Picture_8.png, Dollar at Key Resistance, SPX 500 Struggling with Follow-Through

Daily Chart - Created Using FXCM Marketscope 2.0

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

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