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Dollar Hits Five-Month Low as SPX 500 Sets Record High

By , Currency Strategist
18 October 2013 08:19 GMT

Talking Points

  • US Dollar Down to Five-Month Low After Clearing June Bottom
  • S&P 500 Soars Past September Swing Top, Sets New Record High
  • Gold Validates Bullish Chart Setup, Breaks 7-Week Down Trend

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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 broke support in the 10468-69 area, marked by the June swing low and the 23.6% Fibonacci expansion, to challenge the 38.2% level at 10416. A further push beneath that eyes the 50% level at 10374. Alternatively, a reversal back above 10469 eyes the October 10 high at 10552.

Forex_Dollar_Hits_Five-Month_Low_as_SPX_500_Sets_Record_High_body_usd.png, Dollar Hits Five-Month Low as SPX 500 Sets Record High

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 recovered as expected after showing a Spinning Top candlestick at support marked by a rising trend line set from late February. A break above the 76.4% Fibonacci expansion at 1729.00 has exposed the 100% level at 1754.40. Alternatively, a reversal back below 1729.00 eyes the 61.8% Fib at 1713.30.

Forex_Dollar_Hits_Five-Month_Low_as_SPX_500_Sets_Record_High_body_spx.png, Dollar Hits Five-Month Low as SPX 500 Sets Record High

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices broke higher as expected after putting in a bullish Morning Star candlestick pattern. Resistance is now at 1321.09, the 38.2% Fibonacci retracement, with a break above that targeting the 50% level at 1342.57. Near-term support is at 1294.51, the 23.6% Fib.

Forex_Dollar_Hits_Five-Month_Low_as_SPX_500_Sets_Record_High_body_gold.png, Dollar Hits Five-Month Low as SPX 500 Sets Record High

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices edged below support at 100.88, a horizontal pivot dating back to April 2012, opening the door for a move to the 100.00 figure and 98.99. Alternatively, a reversal above 100.88 targets the top of a falling channel set from the August 28 swing high (now at 103.08).

Forex_Dollar_Hits_Five-Month_Low_as_SPX_500_Sets_Record_High_body_crude.png, Dollar Hits Five-Month Low as SPX 500 Sets Record High

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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18 October 2013 08:19 GMT