US Dollar Topping Warning Remains, SPX 500 Finds Interim Support

2014-09-11 06:27:00 Ilya Spivak, Head Strategist, APAC

Talking Points:

US Dollar Topping Warning Remains Despite New 2014 High
S&P 500 Drop Stalls at Interim Support Below the 2000 Mark
Crude Oil Prices Testing Pivotal Support, Gold Losses Mount

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

US DOLLAR TECHNICAL ANALYSIS – Prices may be topping as prices produce a Shooting Star candlestick after setting a fresh 2014 high.A daily close below the 61.8% Fibonacci expansion at 10800 exposes the 10756-65 area marked by the January 2014 high and the 50% level. Alternatively, a push above the 76.4% Fib at 10844 clears the way for a test of the 100% expansion at 10914.

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 1984.60, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 1967.30. Alternatively, a reversal above the September 3 high at 2012.60 targets the upper boundary of the index’s long-term uptrend at 2037.50.

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices are testing falling channel support at 1245.13, with a break below that on a daily closing basis exposing the 38.2% Fibonacci expansion at 1239.98. Alternatively, a turn above the 23.6% level at 1252.82 targets the 14.6% Fib at 1260.73.

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices broke support at 99.91, the 23.6% Fibonacci expansion. Sellers are now testing 97.77, the intersection of the 38.2% level and a falling channel floor, with a further push below that exposing the 50% Fib at 96.04. Alternatively, a reversal back above 99.91 aims for the channel top at 101.71.