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

RELATED QUOTES

SymbolPriceChange
^USDOLLAR11,966.36+7.35

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
    1.3503-0.0007-0.05%
    USDSGD=X
    1.4729+0.0001+0.01%
    EURSGD=X
    2.0726-0.0015-0.07%
    GBPSGD=X
    91.9135+0.3366+0.37%
    SGDJPY=X
    5.7414-0.0008-0.01%
    SGDHKD=X
    2.7016+0.0049+0.18%
    SGDMYR=X
    9,786.3604+34.3037+0.35%
    SGDIDR=X
    4.5915+0.002+0.04%
    SGDCNY=X
    1.0371-0.0073-0.70%
    AUDSGD=X
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    Commodities
    NamePriceChange% Chg
    1,187.10+1.50+0.13%
    GCM15.CMX
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    SIN15.CMX
    68.76+0.07+0.10%
    ^XAU
    2.770.00+0.16%
    HGN15.CMX
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    CLN15.NYM
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    Bonds
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MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.192+0.017+9.71%
    F13.SI
    0.345+0.005+1.47%
    AFC.SI
    0.290.000.00%
    5WA.SI
    0.42-0.01-1.18%
    E5H.SI
    4.12-0.04-0.96%
    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.134+0.014+11.67%
    5IF.SI
    1.80+0.16+10.09%
    T14.SI
    0.285+0.025+9.62%
    5SY.SI
    0.192+0.017+9.71%
    F13.SI
    0.33+0.03+8.20%
    T18.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.20-0.05-20.00%
    502.SI
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    5MQ.SI
    0.098-0.011-10.09%
    O2I.SI
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    AWC.SI
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    L10.SI