Forex Analysis: Dollar Hits Six-Month High, S&P 500 Eyes Downside

DailyFX

THE TAKEAWAY: The US Dollar has soared to a six-month high while the S&P 500 is showing signs of a looming downward reversal after a test of the 1500 figure.

US DOLLAR TECHNICAL ANALYSIS Prices are testing resistance at 10170, marked by the intersection of a rising channel top set from mid-September and the 76.4% Fibonacci expansion. A break higher exposes the 100% level at 10248. Near-term trend line support is at 10086. A reversal below that aims for the 38.2% Fib retracement at 10066.

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Forex_Analysis_Dollar_Hits_Six-Month_High_SP_500_Eyes_Downside_body_Picture_4.png, Forex Analysis: Dollar Hits Six-Month High, S&P 500 Eyes Downside

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at 1495.70, the 100% Fibonacci expansion, hinting a move lower is ahead. Near-term support is in the 1470.40-74.90 area marked by the September 14 2012 high and the 76.4% Fib. A reversal below that targets the 61.8% expansion at 1454.50. Alternatively, a break above 1495.70 aims for the 123.6% level at 1531.30.

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Forex_Analysis_Dollar_Hits_Six-Month_High_SP_500_Eyes_Downside_body_Picture_3.png, Forex Analysis: Dollar Hits Six-Month High, S&P 500 Eyes Downside

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices are turning lower resistance at 1690.39, the 38.2% Fibonacci retracement. Trend line resistance-turned-support is in the 1651.68, with a break below that aiming for a falling channel bottom at 1607.37. Alternatively, a move above 1690.39 targets the channel top at 1704.95.

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Forex_Analysis_Dollar_Hits_Six-Month_High_SP_500_Eyes_Downside_body_Picture_2.png, Forex Analysis: Dollar Hits Six-Month High, S&P 500 Eyes Downside

Daily Chart - Created Using FXCM Marketscope 2.0

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CRUDE OIL TECHNICAL ANALYSIS Prices put in a Bearish Engulfing candlestick pattern, hinting a move lower may be ahead. Near-term rising trend line support is at 95.24. A break below that exposing 94.61. Resistance is at 97.41, with a push above that aiming for 94.61.

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Forex_Analysis_Dollar_Hits_Six-Month_High_SP_500_Eyes_Downside_body_Picture_1.png, Forex Analysis: Dollar Hits Six-Month High, S&P 500 Eyes Downside

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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