Forex Analysis: US Dollar Turns Lower as S&P 500 Hits Four-Month High
THE TAKEAWAY: The US Dollar reversed course lower as the S&P 500 raced upward to a four-month high, sapping demand for the haven-linked benchmark currency.
US DOLLAR TECHNICAL ANALYSIS– Prices broke through support at 10059, the 23.6% Fibonacci retracement. Sellers now aim to challenge the 38.2% level at 9998, with a push below that targeting rising channel support at 9963. The 10059 level has been recast as resistance. A reversal back above that sees channel top resistance at 10133.
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S&P 500 TECHNICAL ANALYSIS – Prices are testing resistance at 1474.90, the September 14 high. A break above that targets the 100% Fibonacci expansion at 1459.70. Near-term support is at 1466.10, with a turn back below that targeting the 61.8% Fib at 1454.50.
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GOLD TECHNICAL ANALYSIS – Prices bounced from rising trend line support to test the 38.2% Fibonacci retracement at 1674.78. A break above that exposes the 50% level at 1689.95. Trend line support is now at 1648.72.
Daily Chart - Created Using FXCM Marketscope 2.0
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CRUDE OIL TECHNICAL ANALYSIS– Prices took out trend line resistance set from late February, initially exposing the 61.8% Fibonacci retracement at 94.15. A break above that exposes the 76.4% level at 96.54. The trend line (now at 92.96) has been recast as support, with a drop back below that targeting the 50% level at 92.22.
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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