DailyFX

US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700

Ilya Spivak

THE TAKEAWAY: The US Dollar has descended to test another level of chart support while the S&P 500 rally has paused for a breather below the 1700.00 figure.

Don’t have access the Dow Jones FXCM US Dollar Index? Try the USD basket via Mirror Trader as an alternative. **

US DOLLAR TECHNICAL ANALYSIS – Prices recovered to test falling trend line resistance set from the July 8 high (10800), completing a bullish Morning Star candlestick pattern. A break higher initially targets the 23.6% Fibonacci retracement at 10867. Near-term support is at 10740, the July 23 swing low.

Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_5.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700
Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_5.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700

Daily Chart - Created Using FXCM Marketscope 2.0

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

S&P 500 TECHNICAL ANALYSIS – Prices pulled back from the 1700 figure to retest resistance-turned-support at 1687.40, the May 22 swing high.A reversal back below this barrier exposes the 76.4% Fibonacci expansion at 1675.10. Alternatively, a reversal above 1700 aims for the 100% level at 1710.90.

Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_6.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700
Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_6.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern below resistance at the top of a rising channel set from late June (1361.55), hinting a move lower is ahead. Channel bottom support is now at 1293.56, with a break beneath that initially targeting the 23.6% Fibonacci expansion at 1273.98.

Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_7.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700
Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_7.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS– Prices turned lower as expected, completing a bearish Evening Star candlestick pattern. Initial support is at 105.06, with a break below that targeting the 38.2% level at 102.70. Near-term resistance is at 108.89, the July 19 high.

Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_8.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700
Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_8.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700

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

To be added to Ilya's e-mail distribution list, please CLICK HERE

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

and

Recommended Stories