Tanalys

Dollar Sold Before FOMC Meeting, SPX 500 Testing Record Highs

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Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **

US DOLLAR TECHNICAL ANALYSIS – Prices broke support in the 10646-57 area marked by the August 16 low and the 61.8% Fibonacci expansion. Sellers are now testing the 76.4% level at 10620, with a push beneath that targeting the 100% Fib at 10561. Alternatively, a move back above 10657 initially eyes the 50% expansion at 10687.

Daily Chart – Created Using FXCM Marketscope 2.0

** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.

SP 500 TECHNICAL ANALYSIS – Prices are testing resistance at 1701.80, the 50% Fibonacci expansion, a barrier reinforced by the August swing high at 1709.60. A push above the latter level exposes the 61.8% Fib at 1719.60. Near-term support is at 1684.10, the 38.2% level.

Daily Chart – Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices broke below support at 1316.01, the 38.2%Fibonacci expansion, exposing the 50% level at 1279.68. The 1316.01 mark has been recast as near-term resistance, with a reversal back above that eyeing the 1347.52-60.96 region marked by a horizontal pivot as well as the 23.6% expansion.

Daily Chart – Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices declined as expected after putting in a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 105.93, the 23.6% Fibonacci retracement, with a break below that targeting the bottom of a rising channel set from early July (now at 104.33). Channel resistance is at 110.71.

Daily Chart – Created Using FXCM Marketscope 2.0

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

Contact and follow Ilya on Twitter: @IlyaSpivak

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