Forex Analysis: Dollar Launches Recovery as S&P 500 Selloff Continues

RELATED QUOTES

SymbolPriceChange
^USDOLLAR11,912.17-49.76

THE TAKEAWAY: The US Dollar has launched a recovery, with technical positioning hinting a larger advance is ahead, while the S&P 500 is building on recent losses.

US DOLLAR TECHNICAL ANALYSIS Prices are resting at rising trend line support set from the mid-September bottom, with the outlines of a Flag chart formation hinting at bullish continuation. A Piercing Line candlestick pattern reinforces the case for an upside scenario. A break above Flag resistance at 9970 initially exposes the 23.6% Fibonacci expansion at 9995. Alternatively, a drop below the trend line (now at 9942) targets the Flag bottom at 9890.

Forex_Analysis_Dollar_Launches_Recovery_as_SP_500_Selloff_Continues_body_Picture_4.png, Forex Analysis: Dollar Launches Recovery as S&P 500 Selloff Continues

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices put in a bearish Three Inside Down candlestick pattern in the 1425.40-38.90 resistance area, a barrier reinforced by a falling trend line set from the mid-September swing high (now at 1440.10). The setup hints a move lower is ahead. The appearance of a bearish continuation Flag chart formation reinforces the case for a downside scenario. A break below the Flag bottom at 1414.70 confirms the setup, exposing a measured downside target at 1381.00. Alternatively, a move above 1440.80 targets the next upside hurdle at 1466.10.

Forex_Analysis_Dollar_Launches_Recovery_as_SP_500_Selloff_Continues_body_Picture_3.png, Forex Analysis: Dollar Launches Recovery as S&P 500 Selloff Continues

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices broke lower after putting in a Bearish Engulfing candlestick pattern, taking out support at a rising trend line set from late June. A move lower is now materializing as expected following a Hanging Man candle completed on a retest of this barrier. Near-term support is at 1692.41, the 50% Fibonacci expansion. A break below that exposes the 61.8% level at 1677.84. Trend line support-turned-resistance is at 1719.00, with a break above that broadly targeting 1752.55 anew.

Forex_Analysis_Dollar_Launches_Recovery_as_SP_500_Selloff_Continues_body_Picture_2.png, Forex Analysis: Dollar Launches Recovery as S&P 500 Selloff Continues

Daily Chart - Created Using FXCM Marketscope 2.0

Want to learn more about RSI? Watch this Video.

CRUDE OIL TECHNICAL ANALYSIS Prices moved lower as expected after putting in a Shooting Star candlestick. A bearish continuation Flag chart pattern now appears to be validated with a break through the setup’s lower boundary. Near-term support is at 85.61, the 50% Fibonacci expansion. A break below that exposes the 61.8% Fib at 84.50. Alternatively, a push back above the Flag bottom (87.03) aims for 89.19

Forex_Analysis_Dollar_Launches_Recovery_as_SP_500_Selloff_Continues_body_Picture_1.png, Forex Analysis: Dollar Launches Recovery as S&P 500 Selloff Continues

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.

--

Did you know that you can get stories like this on the Yahoo mail app?
Download it here.
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 Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3328+0.0003+0.03%
    USDSGD=X
    1.4456-0.0018-0.13%
    EURSGD=X
    2.0194-0.0034-0.17%
    GBPSGD=X
    89.4746+0.2551+0.29%
    SGDJPY=X
    5.8155-0.0007-0.01%
    SGDHKD=X
    2.6730-0.0091-0.34%
    SGDMYR=X
    9,739.7725+21.1963+0.22%
    SGDIDR=X
    4.6553+0.0061+0.13%
    SGDCNY=X
    1.0401-0.002-0.19%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,181.40+5.40+0.46%
    GCQ15.CMX
    15.77+0.13+0.83%
    SIK15.CMX
    69.95-0.68-0.96%
    ^XAU
    2.750.00-0.02%
    HGK15.CMX
    57.02-0.13-0.23%
    CLM15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.32-0.03
    ^FVX
    1.92-0.03
    ^TNX
    2.62-0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.85+0.01+1.19%
    N21.SI
    0.290.00-1.69%
    5WA.SI
    0.425-0.005-1.16%
    E5H.SI
    0.2250.0000.00%
    5GB.SI
    1.185+0.030+2.60%
    N03.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.196+0.043+28.10%
    W12.SI
    0.12+0.01+11.11%
    E6R.SI
    0.22+0.02+10.00%
    D38.SI
    0.41+0.03+6.49%
    TI6.SI
    0.35+0.03+7.69%
    41C.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.355-0.095-21.11%
    UV1.SI
    0.109-0.012-9.92%
    5PO.SI
    0.115-0.015-11.54%
    O2I.SI
    0.505-0.065-11.40%
    D11.SI
    0.199-0.021-9.55%
    AFC.SI