Dollar Rejected at Resistance, S&P 500 Flirting with 1700 Figure

DailyFX

THE TAKEAWAY: The US Dollar was swiftly rejected at trend line resistance following a recovery attempt. The S&P 500 continues to look for direction near the 1700 figure.

Don’t have access the Dow Jones FXCM US Dollar Index? Try the USD basket via Mirror Trader as an alternative. **

US DOLLAR TECHNICAL ANALYSIS – Prices overturned a bullish Morning Star candlestick pattern identified yesterday, recoiling from falling trend line resistance set from the July 8 swing high to challenge support at 10739, the 50% Fibonacci retracement. A break beneath this boundary exposes the 61.8% level at 10675. Trend line resistance is now at 10793, with added reinforcement from the 38.2% Fib at 10803.

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Forex_Dollar_Rejected_at_Resistance_SP_500_Flirting_with_1700_Figure_body_Picture_5.png, Dollar Rejected at Resistance, S&P 500 Flirting with 1700 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

** The Dow Jones FXCM USDollar Index and the Mirror Trader USD basket are not the same product.

S&P 500 TECHNICAL ANALYSIS – Prices pulled back from the 1700 figure to retest resistance-turned-support at 1687.40, the May 22 swing high.A reversal back below this barrier exposes the 76.4% Fibonacci expansion at 1675.10. Alternatively, a reversal above 1700 aims for the 100% level at 1710.90.

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Forex_Dollar_Rejected_at_Resistance_SP_500_Flirting_with_1700_Figure_body_Picture_6.png, Dollar Rejected at Resistance, S&P 500 Flirting with 1700 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices put in a Bearish Engulfing candlestick pattern below resistance at the top of a rising channel set from late June (now at 1366.68), hinting a move lower is ahead. Channel bottom support is currently at 1299.97, with a break beneath that initially targeting the 23.6% Fibonacci expansion at 1273.98.

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Forex_Dollar_Rejected_at_Resistance_SP_500_Flirting_with_1700_Figure_body_Picture_7.png, Dollar Rejected at Resistance, S&P 500 Flirting with 1700 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices turned lower as expected, completing a bearish Evening Star candlestick pattern. Initial support is at 105.06, the 23.6% Fibonacci retracement, with a break below that targeting the 38.2% level at 102.70. Near-term resistance is at 108.89, the July 19 high.

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Forex_Dollar_Rejected_at_Resistance_SP_500_Flirting_with_1700_Figure_body_Picture_8.png, Dollar Rejected at Resistance, S&P 500 Flirting with 1700 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

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

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

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