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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • The $USD has been fairly strong against most major currencies, with the notable exception being the anti-risk Japanese Yen.Get your US dollar technical analysis from @JStanleyFX here: https://t.co/d8PsgO8bW4 https://t.co/PiepYwVgvc
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.56%, while traders in US 500 are at opposite extremes with 66.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/mpranMes9K
  • RT @LiveSquawk: ECB’s Mersch: Current Asset Prices At ‘Very Elevated Levels’ https://t.co/E6DEYVx72B
  • Markets are anxious as fears surrounding the #coronavirus continue to mount, sparking selling in risky assets in favor of save haven markets such as #gold. Get your $gld technical analysis from @PaulRobinsonFX here: https://t.co/qXmwQzAUhO $XAUUSD https://t.co/8EeF35onnU
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Gold: 0.54% Silver: 0.13% Oil - US Crude: -2.99% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/NJhyRFrkYx
  • Technical Trade Levels: US #Dollar, $USDCAD, $EURUSD, Crude #Oil & #Gold - https://t.co/cUN7kGHNWv
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.25% 🇨🇭CHF: 0.09% 🇪🇺EUR: -0.09% 🇨🇦CAD: -0.22% 🇳🇿NZD: -0.91% 🇦🇺AUD: -1.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/zYETHVRhWF
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: France 40: 0.16% Germany 30: 0.12% US 500: -1.40% Wall Street: -1.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/f4rpBy36Le
  • US CDC says there has been no confirmed cases of China coronavirus in the US since previous update
  • US Two-Year Notes Draw 1.440% Primary Dealers Accepted: 30.2% Indirect Bidders Accepted: 49.1% Direct Bidders Accepted: 20.7% B/C Ratio: 2.65
US Dollar Breaks Out Higher as S&P 500 Snaps 2-Month Up Trend

US Dollar Breaks Out Higher as S&P 500 Snaps 2-Month Up Trend

2012-03-07 05:45:00
Ilya Spivak, Sr. Currency Strategist
Share:

THE TAKEAWAY: The US Dollar broke resistance capping prices since mid-December as the S&P 500 reversed sharply lower after an extended test of 2011 highs.

S&P 500 – Prices reversed sharply lower having lingered in the 1358.60-1376.10 area for three weeks, validating overt negative RSI divergence we have been monitoring for some time. Sellers now aim to challenge the 23.6% Fibonacci retracement at 1337.30, with a break below that exposing the 38.2% Fib at 1311.30.

US_Dollar_Breaks_Out_Higher_as_SP_500_Snaps_2-Month_Up_Trend_body_Picture_5.png, US Dollar Breaks Out Higher as S&P 500 Snaps 2-Month Up Trend

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL Prices followed a bearish Three Outside Down candlestick pattern with a break below support at 105.82, the confluence of the 23.6% Fibonacci retracement and a rising trend line set from the February 2 swing bottom. Sellers now target the 38.2% Fib at 103.28. The 23.6% level has been recast as near-term resistance.

US_Dollar_Breaks_Out_Higher_as_SP_500_Snaps_2-Month_Up_Trend_body_Picture_6.png, US Dollar Breaks Out Higher as S&P 500 Snaps 2-Month Up Trend

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD Prices took out support at 1687.97, the 38.2% Fibonacci retracement, exposing the 50% Fib at 1656.38 as the next downside objective. The 1687.97 level has been recast as near-term resistance.

US_Dollar_Breaks_Out_Higher_as_SP_500_Snaps_2-Month_Up_Trend_body_Picture_7.png, US Dollar Breaks Out Higher as S&P 500 Snaps 2-Month Up Trend

Daily Chart - Created Using FXCM Marketscope 2.0

US DOLLAR As we suspected last week, the greenback moved higher after putting in a Bullish Engulfing candlestick pattern. Prices have now cleared falling trend line resistance set from the mid-December swing high as well as the 38.2% Fibonacci expansion at 9928, hinting at continued upward momentum ahead. The bulls now aim for the 50% expansion at 10005. The 9928 level has been recast as near-term support and is reinforced by the channel top, now at 9903.

US_Dollar_Breaks_Out_Higher_as_SP_500_Snaps_2-Month_Up_Trend_body_Picture_8.png, US Dollar Breaks Out Higher as S&P 500 Snaps 2-Month Up Trend

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 Ilya 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

News & Analysis at your fingertips.