News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
US Dollar Poised to Challenge 2011 High as S&P 500 Topping Continues

US Dollar Poised to Challenge 2011 High as S&P 500 Topping Continues

Ilya Spivak, Head Strategist, APAC

THE TAKEAWAYUS Dollar bulls are poised to challenge the 2011 closing high as the S&P 500 signals a top is forming, promising safe-haven demand for the greenback.

S&P 500 – Prices continue to hint a double top is taking shape below 1292.90, the October 27 high, with a bearish Hanging Man candlestick followed by a pair of Dojis to reinforce the likelihood that bullish momentum is fading. Initial support stands at 1265.30, with a break below that targeting a rising trend line now at 1244.30.

US_Dollar_Poised_to_Challenge_2011_High_as_SP_500_Topping_Continues_body_Picture_5.png, US Dollar Poised to Challenge 2011 High as S&P 500 Topping Continues

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL Prices are probing through support at 101.28, with a break below that clearing the way for a challenge of the 100.00 figure and 97.89. Near-term resistance remains at 103.35, the November 17 high. A return to bullish momentum that takes out this barrier on a daily closing basis initially exposes 106.05.

US_Dollar_Poised_to_Challenge_2011_High_as_SP_500_Topping_Continues_body_Picture_6.png, US Dollar Poised to Challenge 2011 High as S&P 500 Topping Continues

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD Prices put in a bearish Hanging Man candlestick below resistance at 1629.57, the 38.2% Fibonacci retracement level, hinting a move lower is ahead. Initial support lines up at 1576.35, a long-term rising trend line based from October 2008. Alternatively, a reversal higher through the 38.2% level exposes the 50% Fib at 1662.65

US_Dollar_Poised_to_Challenge_2011_High_as_SP_500_Topping_Continues_body_Picture_7.png, US Dollar Poised to Challenge 2011 High as S&P 500 Topping Continues

Daily Chart - Created Using FXCM Marketscope 2.0

US DOLLAR Prices took out horizontal resistance at 9993, clearing the way for another challenge of the 2011 closing high at 10081. A break above this barrier clears the way for a challenge of 10134, with the longer-term bullish objective implied by a Head & Shoulders chart pattern carved out between October and November at 10237. The 9993 level has been recast as near-term support.

US_Dollar_Poised_to_Challenge_2011_High_as_SP_500_Topping_Continues_body_Picture_8.png, US Dollar Poised to Challenge 2011 High as S&P 500 Topping Continues

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 me on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES