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
GBP/USD
Mixed
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
USD/JPY
Mixed
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
Gold
Mixed
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
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
Bitcoin
Mixed
More View more
US Dollar Trend May Have Reversed, SPX 500 Slumps to Monthly Support

US Dollar Trend May Have Reversed, SPX 500 Slumps to Monthly Support

2014-05-21 05:26:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points:

  • US Dollar Chart Setup Hints at Key Bullish Reversal
  • S&P 500 Sinks Back to Monthly Trend Line Support
  • Crude Oil Jumps to One-Month High, Gold Still Flat

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

US DOLLAR TECHNICAL ANALYSISPrices appear to have set a major double bottom at 10375, the October 2013 floor. An upward trend change is being hinted by a break above resistance at the top of a falling channel that had guided the downward trajectory since the beginning of the year. Resistance is in the 10474-95 area, with a break above that clearing the way for a move to challenge the 10589-619 region. The channel top, now at 10451, has been recast as near-term support.

US Dollar Trend May Have Reversed, SPX 500 Slumps to Monthly Support

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 support at a rising trend line set from late April, now at 1869.00. A break downward exposes the 1850.10-61.90 area, marked by recent swing lows. Resistance is in the 1883.80-88.60 region, bracketed by the March 7 high and the 23.6% Fibonacci expansion. A push through that clears the way for a challenge of the 1897.40-1899.10 zone, the site of the 38.2% level and the April 4 peak.

US Dollar Trend May Have Reversed, SPX 500 Slumps to Monthly Support

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices are consolidating below resistance in the 1305.69-15.60 area, marked by the top of a descending Triangle chart formation and the 38.2% Fibonacci retracement. A break above that on daily closing basis targets the 50% level at 1330.18. The descending Triangle argues in favor of bearish continuation however (though confirmation is absent for now). Near-term support is at 1277.00, the Triangle bottom.

US Dollar Trend May Have Reversed, SPX 500 Slumps to Monthly Support

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices are pushing higher to set sights on resistance at 103.20, the intersection of a rising trend line set from mid-March and the 50% Fibonacci expansion. A break above this barrier initially exposes the 61.8% level at 103.37. Near-term support is at 102.74, the 38.2% Fib, with a move back below that eyeing the 23.6% expansion at 102.17.

US Dollar Trend May Have Reversed, SPX 500 Slumps to Monthly Support

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.