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.

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
EUR/USD
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
More View more
Dollar at Key Resistance, S&P 500 Rally May Lose Steam

Dollar at Key Resistance, S&P 500 Rally May Lose Steam

2013-02-04 03:23:00
Ilya Spivak, Head Strategist, APAC
Share:

THE TAKEAWAY: The US Dollar is testing trend-defining technical resistance while the S&P 500 is showing early signs of exhaustion after hitting a five-year high.

US DOLLAR TECHNICAL ANALYSIS Prices recovered from support in the 10141-53 area, marked by a former resistance level and the 50%Fibonacci expansion, to challenge the top of a rising channel set from mid-September (10201). A break above this boundary targets the 76.4% Fib at 10216. Near-term support is at the 61.8% level (10181), with a reversal below that eyeing the 10141-53 region anew.

Forex_Analysis_Dollar_at_Key_Resistance_SP_500_Rally_May_Lose_Steam_body_Picture_4.png, Dollar at Key Resistance, S&P 500 Rally May Lose Steam

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices pushed to the highest level since December 2007 last week as the bulls advance toward resistance at 1521.20, marked by the 123.6% Fibonacci expansion. A break above that exposes the 138.2% level at 1537.20. Near-term support is at 1495.90, the 100% Fib, with a reversal back below that targeting the 1470.50-74.90 area.

Forex_Analysis_Dollar_at_Key_Resistance_SP_500_Rally_May_Lose_Steam_body_Picture_3.png, Dollar at Key Resistance, S&P 500 Rally May Lose Steam

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices continue to hover above rising trend line support dating back to mid-May (1655.63), with a bullish Morning Star candlestick pattern arguing for an upside bias. Near-term resistance is at 1690.39, the 38.2% Fibonacci retracement, followed by a falling channel top at 1698.28. Alternatively, a drop below support targets the January 4 low at 1625.69 and the channel bottom (now right at the 1600/oz figure).

Forex_Analysis_Dollar_at_Key_Resistance_SP_500_Rally_May_Lose_Steam_body_Picture_2.png, Dollar at Key Resistance, S&P 500 Rally May Lose Steam

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices appear to be carving out a bearish Rising Wedge chart formation, with a Dark Cloud Cover candlestick pattern and negative RSI divergence hinting the turn lower may be just around the corner. A break of wedge support at 97.36 targets the 93.40-94.61 area. Near-term resistance is at 98.21, the January 30 high, with a reversal above that eyeing the 100.00 figure and the September 14 top at 100.40.

Forex_Analysis_Dollar_at_Key_Resistance_SP_500_Rally_May_Lose_Steam_body_Picture_1.png, Dollar at Key Resistance, S&P 500 Rally May Lose Steam

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, please CLICK HERE

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

DISCLOSURES

News & Analysis at your fingertips.