DailyFX

US Dollar Chart Setup Favors Gains, SPX 500 Still Vulnerable

Ilya Spivak

Talking Points

  • US Dollar Pulls Back from 5-Week High, Outlook Still Favors Gains

  • S&P 500 Corrects Higher But Topping Chart Formation Still Valid

  • Gold Prices Aiming Below 1300 Figure After Clearing Fib Support

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

US DOLLAR TECHNICAL ANALYSIS – Prices broke resistance at 10529, the 38.2% Fibonacci retracement level, exposing the 50% level at 10583. A further push beyond that eyes the 10625-37 area, marked by the underside of a rising trend line set from early April and the 61.8% Fib. Alternatively, a move back below 10529 targets falling trend line resistance-turned-support at 10486.

Forex_US_Dollar_Chart_Setup_Favors_Gains_SPX_500_Still_Vulnerable_body_Picture_5.png, US Dollar Chart Setup Favors Gains, SPX 500 Still Vulnerable
Forex_US_Dollar_Chart_Setup_Favors_Gains_SPX_500_Still_Vulnerable_body_Picture_5.png, US Dollar Chart Setup Favors Gains, SPX 500 Still Vulnerable

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. Initial 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_US_Dollar_Chart_Setup_Favors_Gains_SPX_500_Still_Vulnerable_body_Picture_6.png, US Dollar Chart Setup Favors Gains, SPX 500 Still Vulnerable
Forex_US_Dollar_Chart_Setup_Favors_Gains_SPX_500_Still_Vulnerable_body_Picture_6.png, US Dollar Chart Setup Favors Gains, SPX 500 Still Vulnerable

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices broke below support at 1318.73, the 23.6% Fibonacci expansion, exposing the 38.2% level at 1292.15. A further push beneath that eyes the 50% Fib at 1270.67. Alternatively, a move back above 1318.73 sees the next major level of resistance at 1361.70, the October 28 swing high.

Forex_US_Dollar_Chart_Setup_Favors_Gains_SPX_500_Still_Vulnerable_body_Picture_7.png, US Dollar Chart Setup Favors Gains, SPX 500 Still Vulnerable
Forex_US_Dollar_Chart_Setup_Favors_Gains_SPX_500_Still_Vulnerable_body_Picture_7.png, US Dollar Chart Setup Favors Gains, SPX 500 Still Vulnerable

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices are testing support are the bottom of a falling channel set from late August (93.82), with a break downward targeting the 100% Fibonacci expansion at 93.18. Near-term resistance is at 95.82, the 76.4% level. A reversal back above that targets the 61.8% Fib at 97.45.

Forex_US_Dollar_Chart_Setup_Favors_Gains_SPX_500_Still_Vulnerable_body_Picture_8.png, US Dollar Chart Setup Favors Gains, SPX 500 Still Vulnerable
Forex_US_Dollar_Chart_Setup_Favors_Gains_SPX_500_Still_Vulnerable_body_Picture_8.png, US Dollar Chart Setup Favors Gains, SPX 500 Still Vulnerable

Daily Chart - Created Using FXCM Marketscope 2.0

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

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