Members login
S&P 500 Technical Support Break Bolsters US Dollar Outlook
Written by article default Monday, 30 January 2012 07:34
THE TAKEAWAY – The S&P 500 has taken out a key support level, bolstering the case for a forthcoming recovery in the safe-haven US Dollar.
S&P 500 – Prices broke through support at the bottom of a rising channel set from late December after putting in a Bearish Engulfing below the formation’s upper boundary, with sellers now aiming at secondary horizontal support at 1307.10. A break below this level initially exposes 1285.90. The channel bottom, now at 1314.30, marks initial resistance.
8hr Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices continue to consolidate above support at 97.70, with the first layer of resistance still at 101.28. A break lower exposes resistance-turned-support at the top of a falling channel set from mid-November, now at 96.11. Alternatively, a push higher initially targets the mid-November high at 103.35.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices are recoiling from resistance at 1746.10, with a correction lower seeing initial support at 1704.03 marked by the top for a rising channel that previously acted as resistance. Alternatively, a break higher exposes the early November swing top at 1802.80.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices broke through support in the 9781-9823 region, with sellers now poised to challenge 9679. Positive RSI divergence on intraday charts (not shown) warns that a bounce may be forthcoming however. The 9781 level has been recast as near-term resistance.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Follow me on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to This e-mail address is being protected from spambots. You need JavaScript enabled to view it
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.