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Dollar Aiming at 2-Month Resistance, SPX 500 Drifting Sideways

By , Currency Strategist
21 January 2014 09:25 GMT

Talking Points:

  • US Dollar Set to Challenge Two-Month Uptrend Boundary
  • S&P 500 Still Oscillating in a Familiar Consolidation Range
  • Gold Technical Positioning Hints a Reversal Lower is Ahead

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

US DOLLAR TECHNICAL ANALYSISPrices are eyeing resistance in the 10761-66 area, marked by the 38.2% Fibonacci expansion and the top of a rising channel. A break higher exposes the 50% level at 10806. Reversing below the 10707-27 region (December 19 high, 23.6% Fib) targets the channel bottom, now at 10644.

Forex_Dollar_Aiming_at_2-Month_Resistance_SPX_500_Drifting_Sideways_body_Picture_4.png, Dollar Aiming at 2-Month Resistance, SPX 500 Drifting Sideways

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 ANALYSISPrices are testing resistance in the 1844.90-49.10 area, marked by the December 31 high and the 14.6% Fibonacci expansion. A break higher exposes the 23.6% level at 1863.10. Near-term support is at 1819.60, the 14.6% Fib retracement.

Forex_Dollar_Aiming_at_2-Month_Resistance_SPX_500_Drifting_Sideways_body_Picture_3.png, Dollar Aiming at 2-Month Resistance, SPX 500 Drifting Sideways

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices put in a Shooting Star candlestick below support-turned-resistance at 1261.82, hinting a move lower is ahead. An emerging Rising Wedge chart formation bolsters the case for a downward reversal. Breaking below the 1240.12-45.42 area (horizontal pivot, Wedge bottom) exposes 1218.82, the 23.6% Fibonacci expansion.

Forex_Dollar_Aiming_at_2-Month_Resistance_SPX_500_Drifting_Sideways_body_Picture_2.png, Dollar Aiming at 2-Month Resistance, SPX 500 Drifting Sideways

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSISPrices pushed higher as expected after putting in a bullish Piercing Line candlestick pattern. A push above resistance at 94.85, the 38.2% Fibonacci retracement, exposes the 50% level at 95.97. Reversing below support at 93.46, the 23.6% Fib, aims for the January 9 low at 91.21.

Forex_Dollar_Aiming_at_2-Month_Resistance_SPX_500_Drifting_Sideways_body_Picture_1.png, Dollar Aiming at 2-Month Resistance, SPX 500 Drifting Sideways

Daily Chart - Created Using FXCM Marketscope 2.0

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

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21 January 2014 09:25 GMT