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, S&P 500 Challenge Trend-Defining Technical Barriers

US Dollar, S&P 500 Challenge Trend-Defining Technical Barriers

Ilya Spivak, Head Strategist, APAC

THE TAKEAWAY: The US Dollar is testing formative resistance while the S&P 500 is probing below critical support, hinting major trend reversals may be just around the corner.

S&P 500 – Prices are testing trend-defining support at 1424.90, marked by the March 27 swing high and the bottom of a rising channel set from the early June swing bottom. A break below this barrier is likely to mark a significant bearish reversal, initially exposing the 1400 figure. The first layer of significant resistance is in the 1461.10-66.10 area, defined by the underside of a previously broken rising trend line and the range top prevailing since mid-September.

US_Dollar_SP_500_Challenge_Trend-Defining_Technical_Barriers_body_Picture_5.png, US Dollar, S&P 500 Challenge Trend-Defining Technical Barriers

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL Prices are testing resistance at the would-be neckline of an inverse Head and Shoulders bottom (92.50), with a break higher implying a measured upside target at 97.96. Support stands at 87.66, the 38.2% Fibonacci retracement. A drop below that targets the 50% level at 83.76.

US_Dollar_SP_500_Challenge_Trend-Defining_Technical_Barriers_body_Picture_6.png, US Dollar, S&P 500 Challenge Trend-Defining Technical Barriers

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD Prices broke support at the bottom of a bearish Rising Wedge chart pattern after putting in a Dark Cloud Cover candlestick pattern at resistance in the 1790.55-1802.80 area. Negative RSI divergence reinforces the case for a downward reversal. Sellers are now testing below the 23.6% Fibonacci retracement at 1747.20, with a break below that targeting the 38.2% level at 1717.13. The Wedge bottom, now at 1764.25, has been recast as near-term resistance.

US_Dollar_SP_500_Challenge_Trend-Defining_Technical_Barriers_body_Picture_7.png, US Dollar, S&P 500 Challenge Trend-Defining Technical Barriers

Daily Chart - Created Using FXCM Marketscope 2.0

Want to learn more about RSI? Watch this Video.

US DOLLAR Prices are testing critical resistance in the 9928-38 area, marked by the late August swing bottom and the top of a falling channel set from the early June high. A break higher threatens to produce a significant upward trend reversal, initially exposing 9985. Rising trend line support is at 9890, with a break below that targeting 9823.

US_Dollar_SP_500_Challenge_Trend-Defining_Technical_Barriers_body_Picture_8.png, US Dollar, S&P 500 Challenge Trend-Defining Technical Barriers

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