Dollar Rebounds Even as SPX 500 Vaults to New Record High

DailyFX

Talking Points

  • US Dollar Launches an Impressive Recovery Before FOMC
  • S&P 500 Approaching Chart Resistance Level Below 1780.00
  • Gold Price Rally Stalls, Crude Oil Recovery Suffers Setback

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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 broke back above support-turned-resistance at April’s bottom (10424) and cleared the 23.6% Fibonacci retracement at 10462. Buyers now aim to challenge a formerly broken Wedge formation bottom at 10505, with a further push higher beyond that eyeing the 38.2% Fib at 10529. Alternatively, a move back below 10424 targets the October 23 low at 10354.

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Forex_Dollar_Rebounds_Even_as_SPX_500_Vaults_to_New_Record_High_body_Picture_5.png, Dollar Rebounds Even as SPX 500 Vaults to New Record High

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 recovered as expected after showing a Spinning Top candlestick at support marked by a rising trend line set from late February. A break above resistance at 1754.40, the 100% Fibonacci expansion, has exposed the 123.6% level at 1779.80, with a further push beyond that eyeing the 138.2% Fib at 1795.50. Alternatively, dropping back below 1754.40 sees the first layer of support at 1729.00, the 76.4% expansion.

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Forex_Dollar_Rebounds_Even_as_SPX_500_Vaults_to_New_Record_High_body_Picture_6.png, Dollar Rebounds Even as SPX 500 Vaults to New Record High

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices broke higher as expected after putting in a bullish Morning Star candlestick pattern. A pullback from resistance at 1364.06, the 61.8% Fibonacci retracement, sees prices testing the 50% level at 1342.57 as support. A break downward initially targets the 38.2% Fib at 1321.09. Alternatively, a reversal above resistance aims for the 76.4% retracement at 1390.64.

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Forex_Dollar_Rebounds_Even_as_SPX_500_Vaults_to_New_Record_High_body_Picture_7.png, Dollar Rebounds Even as SPX 500 Vaults to New Record High

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices are attempted to edge higher as expected after putting in a bullish Morning Star candlestick pattern at the bottom of a falling channel set from late August. Follow-through has been limited thus far however, with buyers suffering a sizable setback over the past 24 hours. Near-term resistance is at 99.77, the 23.6% Fibonacci retracement, with a break above that targeting the channel top at 101.10. Support is now in the 98.85-93 area, marked by the channel bottom and the October 24 swing low.

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Forex_Dollar_Rebounds_Even_as_SPX_500_Vaults_to_New_Record_High_body_Picture_8.png, Dollar Rebounds Even as SPX 500 Vaults to New Record High

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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