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
Dollar Tests Resistance as S&P 500 Builds Bearish Chart Setup

Dollar Tests Resistance as S&P 500 Builds Bearish Chart Setup

Ilya Spivak, Head Strategist, APAC

THE TAKEAWAY: The US Dollar finds itself at key resistance as the S&P 500 positioning continues to build the case for a significant bearish reversal ahead.

S&P 500 – Prices completed a bearish Evening Doji Star candlestick pattern at the top of a Rising Wedge chart formation, hinting a move lower is ahead. Initial support lines up at 1363.90, with a break below that exposing the 1334.40-41.90 area. A daily close beneath the latter boundary will confirm the larger Wedge setup, opening the door for a larger reversal. Wedge top resistance is now at 1381.30, with a break above that exposing 1392.10.

Dollar_Tests_Resistance_as_SP_500_Builds_Bearish_Chart_Setup_body_Picture_5.png, Dollar Tests Resistance as S&P 500 Builds Bearish Chart Setup

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL Prices are showing a Shooting Star candlestick, hinting at ebbing bullish conviction and warning that a pullback may be ahead. Overall positioning continues to broadly favor the upside however, with the break of the 23.6% Fibonacci retracement at 85.11 arguing for a forthcoming test of resistance at 89.97 marked by the 38.2% level and reinforced by the psychologically significant 90.00 figure. A break back below 85.11 is needed to neutralize upside pressure, exposing 81.19 anew.

Dollar_Tests_Resistance_as_SP_500_Builds_Bearish_Chart_Setup_body_Picture_6.png, Dollar Tests Resistance as S&P 500 Builds Bearish Chart Setup

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD Prices completed a bearish Evening Star candlestick pattern below falling trend line resistance set from late March, hinting a move lower is ahead. Initial support lines up at the 1600/oz figure, a psychological barrier reinforced by the 23.6% Fibonacci expansion. A break below that exposes the 38.2% level at 1575.81. Trend line resistance is now at 1618.43.

Dollar_Tests_Resistance_as_SP_500_Builds_Bearish_Chart_Setup_body_Picture_7.png, Dollar Tests Resistance as S&P 500 Builds Bearish Chart Setup

Daily Chart - Created Using FXCM Marketscope 2.0

US DOLLAR Prices are testing falling trend line resistance set from late May, with a break higher exposing the 38.2% Fibonacci expansion at 10219. Near-term support lines up in the 10032-67 area. A break below that exposes multi-month rising trend line support, now at 9940.

Dollar_Tests_Resistance_as_SP_500_Builds_Bearish_Chart_Setup_body_Picture_8.png, Dollar Tests Resistance as S&P 500 Builds Bearish Chart Setup

4hr 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