Forex Analysis: S&P 500 Reversal May Cut Short US Dollar Selloff

RELATED QUOTES

SymbolPriceChange
^USDOLLAR12,029.19+10.75

THE TAKEAWAY: Technical positioning hints the S&P 500 may be on the cusp of a reversal lower, hinting a pick-up in haven demand may cut short recent US Dollar weakness.

US DOLLAR TECHNICAL ANALYSIS Prices broke through support at the bottom of a rising channel set from mid-September, exposing the 23.6% Fibonacci expansion at 9933. A sustained push below that targets the 38.2% level at 9849. Channel bottom support-turned-resistance is now at 9978.

Forex_Analysis_SP_500_Reversal_May_Cut_Short_US_Dollar_Selloff_body_Picture_4.png, Forex Analysis: S&P 500 Reversal May Cut Short US Dollar Selloff

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_SP_500_Reversal_May_Cut_Short_US_Dollar_Selloff_body_Picture_3.png, Forex Analysis: S&P 500 Reversal May Cut Short US Dollar Selloff

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices broke lower as expected after putting in a Bearish Engulfing candlestick pattern, taking out support at a rising trend line set from late June. Sellers now aim to challenge the November 5 low at 1672.50. The trend line (now at 1708.59) has been recast as resistance, with a push back above that aiming to challenge 1752.55.

Forex_Analysis_SP_500_Reversal_May_Cut_Short_US_Dollar_Selloff_body_Picture_2.png, Forex Analysis: S&P 500 Reversal May Cut Short US Dollar Selloff

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 90.60, 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 85.61 as well as the November 7 low at 84.04. Alternatively a break above 90.60 exposes the 38.2% expansion at 92.87.

Forex_Analysis_SP_500_Reversal_May_Cut_Short_US_Dollar_Selloff_body_Picture_1.png, Forex Analysis: S&P 500 Reversal May Cut Short US Dollar Selloff

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 Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4081-0.0036-0.26%
    USDSGD=X
    1.5952+0.0127+0.80%
    EURSGD=X
    2.1662-0.0003-0.01%
    GBPSGD=X
    85.2483-0.6274-0.73%
    SGDJPY=X
    5.5036+0.0139+0.25%
    SGDHKD=X
    2.9555-0.0102-0.35%
    SGDMYR=X
    10,004.0479+56.04+0.56%
    SGDIDR=X
    4.5224+0.006+0.13%
    SGDCNY=X
    1.0015-0.0023-0.22%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,142.40+9.90+0.87%
    GCZ15.CMX
    14.61+0.03+0.20%
    SIZ15.CMX
    48.43-0.40-0.81%
    ^XAU
    2.32-0.02-0.86%
    HGZ15.CMX
    47.77-1.43-2.91%
    CLV15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.54+0.02
    ^FVX
    2.20+0.01
    ^TNX
    2.93+0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.137+0.007+5.38%
    5DN.SI
    0.310.000.00%
    5WA.SI
    0.5450.0000.00%
    N21.SI
    0.725+0.005+0.69%
    5ME.SI
    3.740.000.00%
    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.26+0.02+10.64%
    L38.SI
    0.22+0.02+10.00%
    AZR.SI
    0.22+0.02+10.00%
    GG7.SI
    0.795+0.055+7.43%
    41E.SI
    0.38+0.03+7.04%
    MS7.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.205-0.045-18.00%
    5NF.SI
    0.158-0.033-17.28%
    L02.SI
    0.485-0.080-14.16%
    L5I.SI
    0.16-0.02-11.11%
    M9F.SI
    0.18-0.02-10.00%
    5WR.SI