Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account


DailyFX Home / Technical Analysis / Articles / Cross-Market Technical Update

Dollar Breaks Higher as S&P Sags Ahead of US Jobs Report

By , Currency Strategist
02 September 2011 04:46 GMT

THE TAKEAWAYThe Dollar broke a technical resistance level as the S&P 500 slipped below the 1200 figure ahead of the much-anticipated US Employment report.

S&P 500 – Prices put in a Doji candlestick below resistance at 1221.80 and turned lower, taking out the midline of a rising channel set from the August 9 swing low. Bears are now probing below the 1200.00 figure with a daily close beneath this boundary exposing 1176.40. The 1221.80 level remains as near-term resistance.

Dollar_Breaks_Higher_as_SP_Sags_Ahead_of_US_Jobs_Report_body_Picture_5.png, Dollar Breaks Higher as S&P Sags Ahead of US Jobs Report

CRUDE OIL Positioning is little changed from yesterday after prices put in a second Doji candlestick below support-turned-resistance at $89.59, the June 27 wick low, pointing to indecision and hinting bullish momentum may be fading. A reversal lower from here sees initial support at a rising trend line set from the August 9 swing low, now at $84.20. Alternatively, a break higher sees resistance at a multi-month channel top established from early May ($92.35).

Dollar_Breaks_Higher_as_SP_Sags_Ahead_of_US_Jobs_Report_body_Picture_6.png, Dollar Breaks Higher as S&P Sags Ahead of US Jobs Report

GOLD Positioning is unchanged from yesterday: “Prices appear to be forming a bearish Head and Shoulders top below the $1900/oz figure. The setup requires confirmation on a break the formation’s would-be neckline at $1732.54 and would expose a measured target at $1553.18. Near-term support lines up at $1808.22, with a break below that exposing $1788.09. Initial resistance stands at $1840.75.”

Dollar_Breaks_Higher_as_SP_Sags_Ahead_of_US_Jobs_Report_body_Picture_7.png, Dollar Breaks Higher as S&P Sags Ahead of US Jobs Report

US DOLLAR Prices took out resistance at 9459, the 61.8%Fibonacci retracement level, after putting in a bullish Piercing Line candlestick pattern above support at the 76.4% level (9407). The bulls are now targeting 9502, 50% Fib. The 61.8% level has now been recast as support.

Dollar_Breaks_Higher_as_SP_Sags_Ahead_of_US_Jobs_Report_body_Picture_8.png, Dollar Breaks Higher as S&P Sags Ahead of US Jobs Report

Created Using FXCM Marketscope 2.0

For real time news and analysis, please visit

To receive future articles by email, please contact Ilya at

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

02 September 2011 04:46 GMT