Dollar Stalls at Chart Resistance, S&P 500 Standstill Continues

2013-08-01 02:43:00

Ilya Spivak, Head Strategist, APAC

THE TAKEAWAY: The US Dollar has stalled at technical resistance after completing a would-be breakout higher. The S&P 500 continues to consolidate below the 1700 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 broke above resistance the top of a Flag chart pattern, hinting at bullish continuation ahead. Initial resistance is at 10820, the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 10899. Flag top resistance-turned-support is now at 10736, followed by the July 29 swing low at 10693.

Forex_Dollar_Stalls_at_Chart_Resistance_SP_500_Standstill_Continues_body_Picture_5.png, Dollar Stalls at Chart Resistance, S&P 500 Standstill Continues

Daily Chart - Created Using FXCM Marketscope 2.0

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

S&P 500 TECHNICAL ANALYSIS – Prices are drifting sideways below the 1700 figure along 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 push above 1700 aims for the 100% level at 1710.90.

Forex_Dollar_Stalls_at_Chart_Resistance_SP_500_Standstill_Continues_body_Picture_6.png, Dollar Stalls at Chart Resistance, S&P 500 Standstill Continues

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, hinting a move lower is ahead. Channel bottom support is now at 1323.05, with a break beneath that initially targeting the 23.6% Fibonacci expansion at 1273.98. Near-term resistance is at 1347.57, the July 24 high, followed by the channel top at 1390.41.

Forex_Dollar_Stalls_at_Chart_Resistance_SP_500_Standstill_Continues_body_Picture_7.png, Dollar Stalls at Chart Resistance, S&P 500 Standstill Continues

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS– Prices put in a Bullish Engulfing candlestick pattern, hinting at gains ahead. Near-term resistance is at 106.49, the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 108.85. Near-term support is at 102.66, the July 30 low.