THE TAKEAWAY: The US Dollar is attempting to renew its long-term advance while the SPX 500 is working through multi-month rising trend support.
Don’t have access to the Dow Jones FXCM US Dollar Index? Try the USD basket via Mirror Trader as an alternative. **
US DOLLAR TECHNICAL ANALYSIS – Prices took out range top resistance at 10760 to test the 23.6% Fibonacci expansion at 10796, a barrier reinforced by the top of a falling channel set from early July. A break higher exposes the 38.2% level at 10886. The 10760 level has been recast as near-term support.
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 grinding lower through supports at a pair of trend lines set from the November 2012 swing bottom. Near-term resistance is at 1646.20, the intersection of the first layer of trend line support and the 23.6% Fibonacci retracement. A break above that exposes the 38.2% level at 1658.30. Secondary trend line support is now at 1629.00, with a move below that eyeing the August 28 low at 1626.60.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a Shooting Star candlestick pattern below resistance at 1440.23, marked by the intersection of a rising channel top and the 100% Fibonacci expansion, hinting at a move lower ahead. Near-term support is at 1400.72, the site of the 76.4% Fib and the channel bottom, with push beneath that initially exposing the 61.8% level at 1376.28. Alternatively, a reversal above resistance eyes the channel top at 1454.91, followed by the 123.6% expansion at 1479.74.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– The appearance of a Triangle chart pattern preceded upward continuation as expected. Near-term resistance is now at 111.10, the 38.2% Fibonacci expansion, with a break higher exposing the 50% level at 113.85. A Shooting Star candlestick warns of a pullback however. Initial support is at 107.70, marked by the Triangle top and the 23.6% level.
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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