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 Recovery Hinted as S&P 500 Chart Setup Warns of Reversal

US Dollar Recovery Hinted as S&P 500 Chart Setup Warns of Reversal

Ilya Spivak, Head Strategist, APAC

THE TAKEAWAY: The safe-haven US Dollar may be preparing to launch a recovery as S&P 500 technical positioning warns of a downward reversal ahead.

S&P 500 – Prices put in a Hanging Man candlestick below trend-defining resistance in the 1346.90-1362.90 area, hinting a move lower may be ahead. Negative RSI reinforces the case for a downside scenario. The first layer of significant support lines up at 1305.40. Alternatively, a daily close above 1362.90 would go a long way toward neutralizing the bearish tone of overall positioning established since May.

S_Dollar_Recovery_Hinted_as_SP_500_Chart_Setup_Warns_of_Reversal_body_Picture_5.png, US Dollar Recovery Hinted as S&P 500 Chart Setup Warns of Reversal

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL Unchanged from yesterday: “Prices recovered from resistance-turned-supportat top of a falling channel set from mid-November to retest the broken range bottom at 97.70. A break back higher exposes 101.28. Alternatively, renewed selling sees channel top support at 95.40, with a break below this boundary initially targeting the 93.90-93.35 area.”

S_Dollar_Recovery_Hinted_as_SP_500_Chart_Setup_Warns_of_Reversal_body_Picture_6.png, US Dollar Recovery Hinted as S&P 500 Chart Setup Warns of Reversal

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD Prices continued lower after putting in a Bearish Engulfing candlestick pattern below resistance at 1763.00, taking out the first later of support marked by a former channel top. Sellers now aim to challenge 1702.90, with a push below that exposing 1677.05. Near-term resistance is now at 1729.32.

S_Dollar_Recovery_Hinted_as_SP_500_Chart_Setup_Warns_of_Reversal_body_Picture_7.png, US Dollar Recovery Hinted as S&P 500 Chart Setup Warns of Reversal

Daily Chart - Created Using FXCM Marketscope 2.0

US DOLLAR Prices stalling above 9679, a barrier that has acted as significant support and resistance since August, with a series of back-to-back Hammer candlesticks warning of fading bearish momentum and hinting a reversal may be ahead. Initial Andrew’s Pitchfork bottom resistance lines up at 9753, with a break above that targeting 9823.

S_Dollar_Recovery_Hinted_as_SP_500_Chart_Setup_Warns_of_Reversal_body_Picture_8.png, US Dollar Recovery Hinted as S&P 500 Chart Setup Warns of Reversal

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