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US Dollar Slumps to Trend Support, SPX 500 Back at Record Highs

US Dollar Slumps to Trend Support, SPX 500 Back at Record Highs

Ilya Spivak, Head Strategist, APAC

Talking Points

  • US Dollar Slumping Back to Five-Month Trend Support
  • S&P 500 Returns to Augusts’ Record High Once Again
  • Gold Finds Interim Support Above the $1300/oz Mark

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Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **

US DOLLAR TECHNICAL ANALYSIS – Prices are pushing through support in the 10631-46 area marked by the August 16 low and the 50% Fibonacci expansion to challenge the 61.8% level at 10588. A break below that aims for a rising trend line set from early April, now at 10571. Near-term resistance is at 10673, the 38.2% Fib.

Forex_Dollar_Slumps_to_Trend_Support_SPX_500_Back_at_Record_Highs_body_Picture_5.png, US Dollar Slumps to Trend Support, SPX 500 Back at Record Highs

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 testing through resistance at 1701.80, the 50% Fibonacci expansion, to challenge the August swing high at 1709.60. A further push above that aims for the 61.8% Fib at 1719.60. Alternatively, a reversal back below 1701.80 targets the 38.2% level at 1684.10.

Forex_Dollar_Slumps_to_Trend_Support_SPX_500_Back_at_Record_Highs_body_Picture_6.png, US Dollar Slumps to Trend Support, SPX 500 Back at Record Highs

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices broke below the bottom of a rising channel set from late-June and cleared the 1347.52-60.96 region marked by a horizontal pivot as well as the 23.6% Fibonacci expansion. Sellers are now challenging the 38.2% level at 1316.01, with a break below that aiming for the 50% Fib at 1279.68. The 1347.52 mark is now acting as near-term resistance.

Forex_Dollar_Slumps_to_Trend_Support_SPX_500_Back_at_Record_Highs_body_Picture_7.png, US Dollar Slumps to Trend Support, SPX 500 Back at Record Highs

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices declined as expected after putting in a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 105.93, the 23.6% Fibonacci retracement, with a break below that targeting the bottom of a rising channel set from early July (now at 104.32). Channel resistance is at 110.65.

Forex_Dollar_Slumps_to_Trend_Support_SPX_500_Back_at_Record_Highs_body_Picture_8.png, US Dollar Slumps to Trend Support, SPX 500 Back at Record Highs

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

Contact and follow Ilya on Twitter: @IlyaSpivak

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

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