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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • Traders in the Euro have a big decision to make this weekend: if EUR/USD hits 1.20, will it continue to advance, consolidate or fall back? Get your $EURUSD market update from @MartinSEssex here:
  • The bullish engulfing candle is one of the forex market's most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here:
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here:
  • Defensive stocks have proven critically important when navigating stock market volatility. Find out what are the most defensive stocks here:
  • Dollar Index has broken major uptrend support and risks accelerated losses into the December open. Get your $USD technical analysis from @MBForex here:
  • The MACD is an indicator that uses exponential moving averages (EMA) to determine trend strength along with entry points based on crossovers. Find out how you can use the MACD as a buy/sell signal here:
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here:
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here:
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here:
  • Beautifully put.
US Dollar Rally Stumbles, SPX 500 at Risk of Downturn

US Dollar Rally Stumbles, SPX 500 at Risk of Downturn

2013-11-27 07:26:00
Ilya Spivak, Head Strategist, APAC

Talking Points:

  • US Dollar Stumbles at November Top as Expected
  • S&P 500 Chart Setup Warns of Reversal Downward
  • Crude Oil Edging Back to November Swing Bottom

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

US DOLLAR TECHNICAL ANALYSIS – Prices pulled back as expected, forming a bearish Dark Cloud Cover candlestick patter below resistance in the 10641-53 area marked by the November 12 high and the 23.6% Fibonacci expansion. Initial support is at 10589, the 23.6% Fib retracement, with a break below that targeting the 38.2% mark at 10589. Alternatively, a turn above 10653 aims for the 38.2% expansion at 10839.

Forex_US_Dollar_Rally_Stumbles_SPX_500_at_Risk_of_Downturn_body_Picture_5.png, US Dollar Rally Stumbles, SPX 500 at Risk of Downturn

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 put in a Shooting Star candlestick below resistance at 1808.20, the 150% Fibonacci expansion, hinting a turn lower may be ahead. Negative RSI divergence and the outlines of a Rising Wedge chart formation reinforce the case for a downside scenario. Initial support is at 1798.50, the 138.2% Fib, with a break below that eyeing the 123.6% level at 1779.80. A push above resistance targets the 161.8% expansion at 1820.80.

Forex_US_Dollar_Rally_Stumbles_SPX_500_at_Risk_of_Downturn_body_Picture_6.png, US Dollar Rally Stumbles, SPX 500 at Risk of Downturn

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices bounced from support at 1222.60, the 76.4% Fibonacci expansion. Resistance is at 1256.18, the intersection of the 23.6% Fib retracement and a falling trend line set from late October. A break above that targets the 38.2% retracement at 1276.35. Alternatively, a reversal below support eyes the $1200/oz figure and the 100% expansion at 1179.63.

Forex_US_Dollar_Rally_Stumbles_SPX_500_at_Risk_of_Downturn_body_Picture_7.png, US Dollar Rally Stumbles, SPX 500 at Risk of Downturn

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices continue to consolidate above the November 14 low 92.49, with positive RSI divergence hinting a reversal higher may be in the works. Initial resistance at 94.47, marked the top of a falling channel set from late August. A break above that initially exposes the 14.6% Fibonacci retracement at 95.37. Alternatively, a move below 92.49 targets the 38.2% Fib expansion at 91.06.

Forex_US_Dollar_Rally_Stumbles_SPX_500_at_Risk_of_Downturn_body_Picture_8.png, US Dollar Rally Stumbles, SPX 500 at Risk of Downturn

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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