Forex Analysis: US Dollar Stalls at Resistance as S&P 500 Bounces

THE TAKEAWAY:The US Dollar has stalled below technical resistance as the S&P 500 has once again managed to hold up above the stubbornly resilient 1400 level.

US DOLLAR TECHNICAL ANALYSIS– Prices narrowly edged though resistance-turned-support at 9963, the 38.2% Fibonacci retracement. Sellers now aim to target 9868-77 area, marked by a rising channel bottom set from mid-September and a falling channel top established from the June 1 high. Resistance is at the 10000 figure, with a break above that aiming for the 50% Fib at 10032.

Forex_Analysis_US_Dollar_Stalls_at_Resistance_as_SP_500_Bounces_body_Picture_5.png, Forex Analysis: US Dollar Stalls at Resistance as S&P 500 Bounces

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices are retesting support-turned-resistance in the 1424.90-30.90 area, with a break higher aiming to challenge the underside of a rising channel set from the June 4 swing low (now at 1450.30). Near-term support lines up at the 1400 figure, with added reinforcement offered by the 38.2% Fibonacci retracement at 1394.30. A drop below the latter level targets the 50% Fib at 1369.40.

Forex_Analysis_US_Dollar_Stalls_at_Resistance_as_SP_500_Bounces_body_Picture_6.png, Forex Analysis: US Dollar Stalls at Resistance as S&P 500 Bounces

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices bounced from support at 1671.83, the 50% Fibonacci retracement level reinforced by a rising trend line set from late June, to reclaim a foothold above the 1700/oz figure. The bulls now aim to challenge the 23.6% retracement at 1737.29. Near-term support is at 1701.09, the 38.2% Fib.

Forex_Analysis_US_Dollar_Stalls_at_Resistance_as_SP_500_Bounces_body_Picture_7.png, Forex Analysis: US Dollar Stalls at Resistance as S&P 500 Bounces

Daily Chart - Created Using FXCM Marketscope 2.0

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CRUDE OIL TECHNICAL ANALYSIS– Prices shot higher to take out resistance at 87.66, the 38.2%Fibonacci expansion, exposing falling trend line set from late September (now at 91.09) as the next upside barrier. This is reinforced by the 23.6% expansion at 92.53, with a break above that aiming for long-term trend line resistance at 96.37. The 87.66 level has been recast as near-term support, with a drop below that eyeing the 50%Fib at 83.76.

Forex_Analysis_US_Dollar_Stalls_at_Resistance_as_SP_500_Bounces_body_Picture_8.png, Forex Analysis: US Dollar Stalls at Resistance as S&P 500 Bounces

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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