Forex Analysis: US Dollar Reverses Higher as S&P 500 Tests Support

RELATED QUOTES

SymbolPriceChange
^USDOLLAR11,942.26-112.19

THE TAKEAWAY: The US Dollar has mounted a formidable reversal while S&P 500 technical positioning hints at weakness, hinting the greenback may see upward follow-through.

US DOLLAR TECHNICAL ANALYSIS Prices are testing above resistance at 9995, the 23.6% Fibonacci expansion, after completing a bullish Flag pattern. A confirmed break higher exposes the 32.8% Fib at 10044. Trend line resistance-turned-support is at 9961.

Forex_Analysis_US_Dollar_Reverses_Higher_as_SP_500_Tests_Support_body_Picture_4.png, Forex Analysis: US Dollar Reverses Higher as S&P 500 Tests Support

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick below falling trend line resistance set from the September 14 high (1444.40), hinting a move lower is ahead. Negative RSI divergence reinforces the case for a downside scenario. Sellers are now testing through initial rising channel support at 1423.50, with a confirmed break downward on a daily closing basis exposing the 38.2% Fibonacci retracement at 1408.80. Alternatively, a reversal above the trend line aims for the channel top at 1455.90.

Forex_Analysis_US_Dollar_Reverses_Higher_as_SP_500_Tests_Support_body_Picture_3.png, Forex Analysis: US Dollar Reverses Higher as S&P 500 Tests Support

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices are testing the 100% Fibonacci expansion at 1630.97, a barrier reinforced by the bottom of a falling channel carved out since mid-September. A further drop below this boundary aims for the 123.6% Fib at 1601.78. The 76.4% expansion at 1659.90 lines up as near-term resistance, with a move above that targeting the 61.8% mark at 1677.84.

Forex_Analysis_US_Dollar_Reverses_Higher_as_SP_500_Tests_Support_body_Picture_2.png, Forex Analysis: US Dollar Reverses Higher as S&P 500 Tests Support

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 bearish Evening Star candlestick pattern below resistance at the top of what may prove to be a bearish Flag chart pattern (90.47). A daily close below the setup’s bottom at 86.10 would act as confirmation, initially exposing 81.63 as the next downside objective. Alternatively, a reversal above 90.47 targets trend line resistance at 93.92.

Forex_Analysis_US_Dollar_Reverses_Higher_as_SP_500_Tests_Support_body_Picture_1.png, Forex Analysis: US Dollar Reverses Higher as S&P 500 Tests Support

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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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3388-0.0142-1.05%
    USDSGD=X
    1.4946-0.0041-0.27%
    EURSGD=X
    1.7679-0.0127-0.71%
    GBPSGD=X
    75.9420-1.817-2.34%
    SGDJPY=X
    5.7885+0.0592+1.03%
    SGDHKD=X
    3.0067+0.0161+0.54%
    SGDMYR=X
    9,779.4102+98.335+1.02%
    SGDIDR=X
    4.9538+0.0358+0.73%
    SGDCNY=X
    1.0165+0.0012+0.12%
    AUDSGD=X
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    Commodities
    NamePriceChange% Chg
    1,357.90+16.70+1.25%
    GCZ16.CMX
    20.39+0.19+0.96%
    SIU16.CMX
    110.28+2.54+2.35%
    ^XAU
    2.23+0.02+0.88%
    HGU16.CMX
    41.38+0.24+0.58%
    CLU16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.03-0.06
    ^FVX
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    ^TNX
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    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.162-0.004-2.41%
    N21.SI
    0.360.000.00%
    E5H.SI
    4.18-0.11-2.56%
    Z74.SI
    0.7850.0000.00%
    G13.SI
    0.30-0.01-4.76%
    5ME.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.179+0.023+14.74%
    AYL.SI
    0.36+0.04+12.50%
    BPF.SI
    0.315+0.035+12.50%
    AWK.SI
    0.58+0.06+11.54%
    BDR.SI
    0.21+0.02+10.53%
    AYD.SI
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    AZT.SI
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    42E.SI
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    BTF.SI
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    RF7.SI
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    T13.SI