US Dollar Backs Off 14-Month High, SPX Trying to Regain Momentum

Talking Points:

  • US Dollar Enters Consolidation Mode After Hitting 14-Month High
  • SP 500 Trying to Regain Upside Momentum Above September Top
  • Crude Oil Rebound Cues Remain, Gold Probing Lower Once Again

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

US DOLLAR TECHNICAL ANALYSIS – Prices corrected modestly lower after hitting the highest level in 14 months against its top counterparts.A daily close below the 14.6% Fibonacci retracementat 10874 exposes the 23.6% level at 10836. Alternatively, a turn above the 23.6% Fib expansion at 10919 clears the way for a test of the 38.2% threshold at 10976.

US Dollar Backs Off 14-Month High, SPX Trying to Regain Momentum

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 ANALYSISPrices are testing resistance in the 2012.60-18.90 area marked by the September 3 high and the 38.2% Fibonacci expansion. A break above this barrier on a daily closing basis exposes the 50% level at 2032.80. Alternatively, a reversal below the 23.6% Fib retracement at 1984.60 targets the 38.2% threshold at 1967.30.

US Dollar Backs Off 14-Month High, SPX Trying to Regain Momentum

Daily Chart – Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices broke downward, with sellers now aiming to challenge the 23.6% Fibonacci expansion at 1213.75. A break below this barrier on a daily closing basis exposes the 38.2% level at 1196.30. Alternatively, a reversal above the 14.6% Fib at 1224.50 targets the September 16 high at 1241.95

US Dollar Backs Off 14-Month High, SPX Trying to Regain Momentum

Daily Chart – Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices are edging higher as expected after putting in a bullish Piercing Line candlestick pattern above support at 96.73, the mid-April 2013 low. Near-term resistance is at 99.47, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 101.18.

US Dollar Backs Off 14-Month High, SPX Trying to Regain Momentum

Daily Chart – Created Using FXCM Marketscope 2.0

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

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