Tanalys

US Dollar Attempting to Break Two-Month Down Trend

Talking Points

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US DOLLAR TECHNICAL ANALYSIS – Prices are testing resistance at 10796-98 area, marked by the 23.6% Fibonacci expansion and the top of a falling channel set from early July. A reversal downward from here sees initial support at 10760, with a break below that targeting 10693 and 10646. Alternatively, a push through resistance aims for the 38.2% Fib at 10882.

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 recovered from a support region bracketed by a pair of trend lines set from the November 2012 swing bottom to edge above the 23.6% Fibonacci retracement at 1646.20. The bulls now aim to challenge the 38.2% level at 1658.30. A reversal back below the 1646.20 level eyes trend line support at 1632.10.

Daily Chart – Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices turned lower as expected, taking out support at the bottom of a rising channel set from early August to expose the 23.6% Fibonacci retracement at 1373.79. A break below that aims for the 38.2% level at 1336.79. The channel bottom – now at 1420.18 – has been recast as near-term resistance.

Daily Chart – Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices pulled back as expected after showing a Shooting Star candlestick. Sellers have now cleared resistance-turned-support at the top of a Triangle chart pattern (107.76) to challenge the 23.6% Fibonacci retracement at 105.93. A break below that targets the Triangle bottom at 104.00. A move back above the Triangle top exposes the 110.00 figure, followed by the August 28 high at 112.21.

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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