Tanalys

US Dollar Rally Pauses, SPX 500 Trying to Break Higher

Talking Points:

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

US DOLLAR TECHNICAL ANALYSIS – Prices rose as expected after putting in a bullish Piercing Line candlestick pattern. A break of resistance at 10685, the 38.2% Fibonacci expansion, has exposed the 50% level at 10723. Pushing further above that exposes the 61.8% Fib at 10760. Alternatively, a reversal below 10685 aims for 10646, a former range top.

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 above resistance at 1823.80, the 38.2% Fibonacci expansion, with a break upward confirmed on a daily closing basis targeting the 50% level at 1843.40. Alternatively, a turn below 1813.10 (November 29 high) exposes the 1773.40-1782.60 area.

Daily Chart – Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices put in a Harami candlestick pattern, hinting a bounce may be in the works. Near-term resistance is at 1217.75, with a break above that exposing the 1251.54-67.71 area. Near-term support is at 1186.83, the December 20 low.

Daily Chart – Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices edged above resistance at 99.05, the 38.2% Fibonacci expansion, clearing the way for a test of the 50% level at 99.94. Alternatively, a reversal back below 99.05 exposes the 23.6% Fib at 97.96.

Daily Chart – Created Using FXCM Marketscope 2.0

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

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