DailyFX

Dollar Rebound Tipped to Continue as Prices Clear Chart Barrier

Ilya Spivak

Talking Points

  • US Dollar Looks Set to Continue Higher After Clearing Resistance

  • S&P 500 Chart Positioning Warns of a Reversal Lower in the Works

  • Gold Turns Lower Anew, Crude Oil Retesting October Swing Low

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

US DOLLAR TECHNICAL ANALYSIS – Prices narrowly cleared resistance marked by a falling trend line set from late September and the 23.6% Fibonacci retracement (10509), exposing the 38.2% level at 10604. A reversal back below the trend line (now at 10492) sees the next layer of support at 10424, the March-May bottom.

Forex_Dollar_Rebound_Tipped_to_Continue_as_Prices_Clear_Chart_Barrier_body_Picture_5.png, Dollar Rebound Tipped to Continue as Prices Clear Chart Barrier
Forex_Dollar_Rebound_Tipped_to_Continue_as_Prices_Clear_Chart_Barrier_body_Picture_5.png, Dollar Rebound Tipped to Continue as Prices Clear Chart Barrier

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 put in a Bearish Engulfing candlestick pattern, arguing for a reversal downward. Near-term support is at 1747.70, the 23.6% Fibonacci retracement. A break below that initially exposes the 38.2% level at 1728.50. Near-term resistance is at 1778.90, the October 30 high.

Forex_Dollar_Rebound_Tipped_to_Continue_as_Prices_Clear_Chart_Barrier_body_Picture_6.png, Dollar Rebound Tipped to Continue as Prices Clear Chart Barrier
Forex_Dollar_Rebound_Tipped_to_Continue_as_Prices_Clear_Chart_Barrier_body_Picture_6.png, Dollar Rebound Tipped to Continue as Prices Clear Chart Barrier

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices turned lower anew, with sellers now testing support at the 23.6% Fibonacci expansion (1318.73). A break below this barrier initially exposes the 38.2% level at 1292.15. Near-term resistance is at 1361.70, the October 28 swing high.

Forex_Dollar_Rebound_Tipped_to_Continue_as_Prices_Clear_Chart_Barrier_body_Picture_7.png, Dollar Rebound Tipped to Continue as Prices Clear Chart Barrier
Forex_Dollar_Rebound_Tipped_to_Continue_as_Prices_Clear_Chart_Barrier_body_Picture_7.png, Dollar Rebound Tipped to Continue as Prices Clear Chart Barrier

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS– Prices are testing support at 95.82, the 76.4% Fibonacci expansion. A break below that targets the bottom of a falling channel set from early September (94.67), followed by the 100% level at 93.18. Alternatively, a break above resistance at 97.45, the 61.8% Fib, targets the intersection of the channel’s upper boundary and the 50% expansion at 98.76.

Forex_Dollar_Rebound_Tipped_to_Continue_as_Prices_Clear_Chart_Barrier_body_Picture_8.png, Dollar Rebound Tipped to Continue as Prices Clear Chart Barrier
Forex_Dollar_Rebound_Tipped_to_Continue_as_Prices_Clear_Chart_Barrier_body_Picture_8.png, Dollar Rebound Tipped to Continue as Prices Clear Chart Barrier

Daily Chart - Created Using FXCM Marketscope 2.0

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

Contact and follow Ilya on Twitter: @IlyaSpivak

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