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US Dollar Rebounds, SPX 500 Sinks Back Below 1800

By , Currency Strategist
12 December 2013 04:22 GMT

Talking Points:

  • US Dollar Retests Broken Range Bottom as Resistance
  • S&P 500 Recoils Downward, Loses Hold on 1800 Mark
  • Crude Oil, Gold Prices Continue to Aim Upward

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

US DOLLAR TECHNICAL ANALYSIS – Prices put in a bullish Piercing Line candlestick pattern, hinting a bounce may be ahead. A break above range bottom support-turned-resistance at 10612 aims for the 10669-85 area marked by the December swing 4 high and the 38.2% Fibonacci expansion. A reversal below support at 10565 (December 10 low) targets the 38.2% Fib retracement at 10549.

Forex_US_Dollar_Rebounds_SPX_500_Sinks_Back_Below_1800_body_Picture_5.png, US Dollar Rebounds, SPX 500 Sinks Back Below 1800

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 fell as expected, with sellers once again testing resistance-turned-support at 1778.90 (October 30 swing high). A break lower initially exposes the 38.2% Fibonacci retracement at 1749.60. Resistance is in the 1813.10-17.80 area, marked by the November 29 high and the 23.6% Fib expansion.

Forex_US_Dollar_Rebounds_SPX_500_Sinks_Back_Below_1800_body_Picture_6.png, US Dollar Rebounds, SPX 500 Sinks Back Below 1800

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices advanced as expected after putting in a bullish Morning Star candlestick pattern coupled with positive RSI divergence. A break above resistance in the 1247.08-51.54 area, marked by the 23.6% Fibonacci retracement and the October 15 low, has exposed the 38.2% level at 1268.98. A further push beyond that eyes the 50% Fib at 1286.68. Alternatively, a reversal back below 1247.08 aims for the December 4 low at 1211.67.

Forex_US_Dollar_Rebounds_SPX_500_Sinks_Back_Below_1800_body_Picture_7.png, US Dollar Rebounds, SPX 500 Sinks Back Below 1800

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance in the 98.74-99.56 area, marked by the October 28 swing high and the 38.2% Fibonacci retracement, hinting a move lower is ahead. Near-term support is at 96.57, the 23.6% Fib, with a break below that targeting 95.36. Alternatively, a push above 99.56 aims for the 50% retracement at 101.97.

Forex_US_Dollar_Rebounds_SPX_500_Sinks_Back_Below_1800_body_Picture_8.png, US Dollar Rebounds, SPX 500 Sinks Back Below 1800

Daily Chart - Created Using FXCM Marketscope 2.0

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

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12 December 2013 04:22 GMT