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Dollar, S&P 500 Stall Before Key US Ecoomic Data

Ilya Spivak

THE TAKEAWAY: The US Dollar and S&P 500 have stalled near familiar technical levels as investors brace for the release of January’s Nonfarm Payrolls and ISM Manufacturing data.

US DOLLAR TECHNICAL ANALYSIS– Prices turned lower as expected after putting in a Shooting Star candlestick below resistance marked by the 61.8% Fibonacci expansion (10181) and a rising channel top (10200). Near-term support lines in up in the 10141-53 area, marked by a former resistance level and the 50% Fib. A break below that exposes the 38.2% level at 10124.

Forex_Analysis_Dollar_SP_500_Stall_Before_Key_US_Ecoomic_Data_body_Picture_4.png, Dollar, S&P 500 Stall Before Key US Ecoomic Data
Forex_Analysis_Dollar_SP_500_Stall_Before_Key_US_Ecoomic_Data_body_Picture_4.png, Dollar, S&P 500 Stall Before Key US Ecoomic Data

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern, hinting a move lower is ahead. Initial support is in the 1470.80-74.90 area, marked by the September 14 high and the 23.6% Fibonacci retracement. A break below that targets the 38.2% level at 1446.20. Near-term resistance is at 1510.60, the January 30 high.

Forex_Analysis_Dollar_SP_500_Stall_Before_Key_US_Ecoomic_Data_body_Picture_3.png, Dollar, S&P 500 Stall Before Key US Ecoomic Data
Forex_Analysis_Dollar_SP_500_Stall_Before_Key_US_Ecoomic_Data_body_Picture_3.png, Dollar, S&P 500 Stall Before Key US Ecoomic Data

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices once again find themselves near major rising trend line support dating back to mid-May (1655.05), but a bullish Morning Star candlestick pattern continues to argue for an upside bias. Near-term resistance is at 1690.39, the 38.2% Fibonacci retracement, followed by the 1700/oz figure and a channel top at 1700.68. Alternatively, a drop below support targets the January 4 low at 1625.69 and the falling channel bottom at 1602.09.

Forex_Analysis_Dollar_SP_500_Stall_Before_Key_US_Ecoomic_Data_body_Picture_2.png, Dollar, S&P 500 Stall Before Key US Ecoomic Data
Forex_Analysis_Dollar_SP_500_Stall_Before_Key_US_Ecoomic_Data_body_Picture_2.png, Dollar, S&P 500 Stall Before Key US Ecoomic Data

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS– Prices cleared resistance at 97.41, exposing the 100.00 figure and the September 14 high at 100.40. Negative RSI divergence warns of ebbing bullish momentum however and hints a reversal may be brewing. A bearish Dark Cloud Cover candlestick pattern is likewise in play, although confirmation would require a clear back below 97.41. Such an outcome initially exposes 94.61.

Forex_Analysis_Dollar_SP_500_Stall_Before_Key_US_Ecoomic_Data_body_Picture_1.png, Dollar, S&P 500 Stall Before Key US Ecoomic Data
Forex_Analysis_Dollar_SP_500_Stall_Before_Key_US_Ecoomic_Data_body_Picture_1.png, Dollar, S&P 500 Stall Before Key US Ecoomic Data

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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