US Dollar Meets Support, S&P 500 Rally Pauses Below 1700

THE TAKEAWAY: The US Dollar has descended to test another level of chart support while the S&P 500 rally has paused for a breather below the 1700.00 figure.

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US DOLLAR TECHNICAL ANALYSIS – Prices continue to play out a bearish reversal identified two weeks ago, taking out support in the 10790-803 area to expose the 50% Fibonacci retracement at 10739. A further push beneath that targets the 61.8% level at 10675. Alternatively, a reversal back above 10803 sees trend line resistance at 10826.

Forex_US_Dollar_Meets_Support_SP_500_Rally_Pauses_Below_1700_body_Picture_5.png, US Dollar Meets Support, S&P 500 Rally Pauses Below 1700

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 broke above resistance at 1687.40, the May 22 swing high, overturning bearish cues noted last week and exposing the 100% Fibonacci expansion at 1710.90. The 1687.40 level has been recast as near-term support, reinforced by a rising trend line set from late June. A reversal back below that eyes the 76.4% level at 1675.10.

Forex_US_Dollar_Meets_Support_SP_500_Rally_Pauses_Below_1700_body_Picture_6.png, US Dollar Meets Support, S&P 500 Rally Pauses Below 1700

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices broke resistance at 1334.08, the 50% Fibonacci retracement, and moved to challenge the top of a rising channel set from late June (1355.13). A further push higher beyond that aims for the 61.8% retracement at 1370.40. The 1334.08 level has been recast as near-term support, with a turn back beneath that eyeing the 38.2% level at 1297.75.

Forex_US_Dollar_Meets_Support_SP_500_Rally_Pauses_Below_1700_body_Picture_7.png, US Dollar Meets Support, S&P 500 Rally Pauses Below 1700

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, with a break below that targeting the 38.2% level at 102.70. Near-term resistance is at 108.89, the July 19 high.

Forex_US_Dollar_Meets_Support_SP_500_Rally_Pauses_Below_1700_body_Picture_8.png, US Dollar Meets Support, S&P 500 Rally Pauses Below 1700

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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