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.

Free Trading Guides
EUR/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
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
US Dollar in Digestion Mode, SPX 500 Hints at Reversal Ahead

US Dollar in Digestion Mode, SPX 500 Hints at Reversal Ahead

2014-01-03 04:10:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • US Dollar Remains Stuck in a Familiar Range
  • S&P 500 Chart Setup Hints at Reversal Ahead
  • Crude Oil Drops, Gold Rebounds as Expected

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

US DOLLAR TECHNICAL ANALYSIS – Prices rose as expected after putting in a bullish Piercing Line candlestick pattern. A break above resistance in the 10719-33 area (rising channel top, 23.6% Fibonacci expansion) exposes the 38.2% level at 10773. Support is at 10646, with a move beneath that eyeing the channel bottom at 10623.

Forex_US_Dollar_in_Digestion_Mode_SPX_500_Hints_at_Reversal_Ahead_body_Picture_5.png, US Dollar in Digestion Mode, SPX 500 Hints at Reversal Ahead

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 – A Bearish Engulfing candlestick pattern hints a move lower is ahead. Near-term support is at 1828.10, the 23.6% Fibonacci retracement, with a break below that targeting the 38.2% level at 1815.20. Near-term resistance is at 1849.10, the December 31 high.

Forex_US_Dollar_in_Digestion_Mode_SPX_500_Hints_at_Reversal_Ahead_body_Picture_6.png, US Dollar in Digestion Mode, SPX 500 Hints at Reversal Ahead

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices turned higher as expected after putting in a Harami candlestick pattern. Near-term resistance is at 1248.70, the 38.2% Fibonacci retracement, with a break higher targeting the 50% level at 1270.28. A turn back below resistance-turned-support at 1217.75 exposes a falling trend line at 1202.91.

Forex_US_Dollar_in_Digestion_Mode_SPX_500_Hints_at_Reversal_Ahead_body_Picture_7.png, US Dollar in Digestion Mode, SPX 500 Hints at Reversal Ahead

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices fell as expected after putting in a Bearish Engulfing candlestick pattern. A break below 95.17, the 61.8% Fibonacci retracement, exposes the 76.4% level at 93.86. Reversing above resistance at 96.23, the 50% Fib, targets the 38.2% retracement at 97.30.

Forex_US_Dollar_in_Digestion_Mode_SPX_500_Hints_at_Reversal_Ahead_body_Picture_8.png, US Dollar in Digestion Mode, SPX 500 Hints at Reversal Ahead

Daily Chart - Created Using FXCM Marketscope 2.0

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

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.

DISCLOSURES

News & Analysis at your fingertips.