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THE TAKEAWAY: The US Dollar has descended to test another level of chart support while the S&P 500 rally has paused for a breather below the 1700.00 figure.

Don’t have access the Dow Jones FXCM US Dollar Index? Try the USD basket via Mirror Trader as an alternative. **

US DOLLAR TECHNICAL ANALYSIS – Prices recovered to test falling trend line resistance set from the July 8 high (10800), completing a bullish Morning Star candlestick pattern. A break higher initially targets the 23.6% Fibonacci retracement at 10867. Near-term support is at 10740, the July 23 swing low.

Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_5.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700

Daily Chart - Created Using FXCM Marketscope 2.0

** The Dow Jones FXCM USDollar Index and the Mirror Trader USD basket are not the same product.

S&P 500 TECHNICAL ANALYSIS – Prices pulled back from the 1700 figure to retest resistance-turned-support at 1687.40, the May 22 swing high.A reversal back below this barrier exposes the 76.4% Fibonacci expansion at 1675.10. Alternatively, a reversal above 1700 aims for the 100% level at 1710.90.

Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_6.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices put in a Bearish Engulfing candlestick pattern below resistance at the top of a rising channel set from late June (1361.55), hinting a move lower is ahead. Channel bottom support is now at 1293.56, with a break beneath that initially targeting the 23.6% Fibonacci expansion at 1273.98.

Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_7.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices turned lower as expected, completing a bearish Evening Star candlestick pattern. Initial support is at 105.06, with a break below that targeting the 38.2% level at 102.70. Near-term resistance is at 108.89, the July 19 high.

Forex_US_Dollar_Recovery_Clues_Emerge_SP_500_Pulls_Back_from_1700_body_Picture_8.png, US Dollar Recovery Clues Emerge, S&P 500 Pulls Back from 1700

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

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