Forex Analysis: Dollar Breaks Down But S&P 500 Drop May Cap Weakness

RELATED QUOTES

SymbolPriceChange
^USDOLLAR12,380.61-13.92

THE TAKEAWAY: The US Dollar broke key technical support but signs of a looming bearish turn from the S&P 500 hint the return of haven demand may offer a lifeline to the greenback.

US DOLLAR TECHNICAL ANALYSIS Prices broke through support at the bottom of a rising channel set from mid-September, exposing the 38.2% Fibonacci retracement at 9945. A break below that targets the 50% level at 9906. The channel bottom, now at 9970, has been recast as near-term resistance. A reversal back above that aims for the 23.6% Fib at 9993.

Forex_Analysis_Dollar_Breaks_Down_But_SP_500_Drop_May_Cap_Weakness_body_Picture_4.png, Forex Analysis: Dollar Breaks Down But S&P 500 Drop May Cap Weakness

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices put in a bearish Evening Star candlestick pattern below resistance in the 1424.90-1430.90 area, hinting the upward correction witnessed since mid-September may be over and the dominant down trend ready to resume. Initial support lines up at 1394.30, the 23.6% Fibonacci expansion. A break below that targets the 38.2% level at 1374.90. Alternatively, a push above 1430.90 exposes the familiar triple top at 1466.10.

Forex_Analysis_Dollar_Breaks_Down_But_SP_500_Drop_May_Cap_Weakness_body_Picture_3.png, Forex Analysis: Dollar Breaks Down But S&P 500 Drop May Cap Weakness

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices turned lower after putting in a Bearish Engulfing candlestick pattern below the 61.8% Fibonacci retracement (1748.70), dropping past the 38.2% level at 1719.60. Sellers now target the 23.6% Fib at 1701.60, a barrier reinforced by a rising trend line set from late June. A push below that initially targets the November 5 low at 1672.50. The 1719.60 level has been recast as initial resistance, with a reversal back above that aiming for the 50% retracement at 1734.15.

Forex_Analysis_Dollar_Breaks_Down_But_SP_500_Drop_May_Cap_Weakness_body_Picture_2.png, Forex Analysis: Dollar Breaks Down But S&P 500 Drop May Cap Weakness

Daily Chart - Created Using FXCM Marketscope 2.0

Want to learn more about RSI? Watch this Video.

CRUDE OIL TECHNICAL ANALYSIS Prices put in a Shooting Star candlestick below resistance at the 23.6% Fibonacci expansion (89.48), a barrier reinforced by a minor rising channel top at 90.50, hinting a move lower is ahead. Near-term support is at 87.42, the 14.6% Fib, with a break below that exposing the channel bottom at 85.56 as well as the November 7 low at 84.04. Alternatively a break above 90.50 exposes the 38.2% expansion at 92.87.

Forex_Analysis_Dollar_Breaks_Down_But_SP_500_Drop_May_Cap_Weakness_body_Picture_1.png, Forex Analysis: Dollar Breaks Down But S&P 500 Drop May Cap Weakness

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

To be added to Ilya's e-mail distribution list, please CLICK HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.167+0.006+3.73%
    N21.SI
    2.28+0.12+5.56%
    MC0.SI
    0.101-0.005-4.72%
    5I0.SI
    0.38+0.01+4.11%
    5ME.SI
    0.195+0.012+6.56%
    SK3.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.23+0.02+9.52%
    BTF.SI
    0.485+0.040+8.99%
    43F.SI
    0.122+0.010+8.93%
    C9Q.SI
    0.46+0.03+8.24%
    P19.SI
    0.195+0.012+6.56%
    SK3.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.155-0.050-24.39%
    K22.SI
    0.215-0.020-8.51%
    RE4.SI
    1.12-0.09-7.44%
    5SR.SI
    0.68-0.04-5.56%
    564.SI
    1.04-0.06-5.02%
    AYN.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4254+0.0069+0.49%
    USDSGD=X
    1.5161+0.0048+0.32%
    EURSGD=X
    1.8131+0.0109+0.60%
    GBPSGD=X
    80.1620+0.43+0.54%
    SGDJPY=X
    5.4385-0.0227-0.42%
    SGDHKD=X
    3.1204-0.0055-0.18%
    SGDMYR=X
    9,432.7490-95.002-1.00%
    SGDIDR=X
    4.8307-0.0179-0.37%
    SGDCNY=X
    1.0576+0.0004+0.04%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,163.10-12.00-1.02%
    GCZ16.CMX
    16.56-0.19-1.15%
    SIZ16.CMX
    82.30+2.99+3.77%
    ^XAU
    2.65+0.04+1.49%
    HGZ16.CMX
    52.18+0.50+0.97%
    CLF17.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.83-0.06
    ^FVX
    2.39-0.05
    ^TNX
    3.06-0.03
    ^TYX