US Dollar Hits Two-Year High, S&P 500 Contiues to Languish

DailyFX   |  February 17 2013 10:55 EST

The US Dollar has soared to the highest level in over two weeks after the weekend’s G20 summit while the S&P 500 continues to languish below chart resistance.

THE TAKEAWAY: The US Dollar has soared to the highest level in over two weeks after the weekend’s G20 summit while the S&P 500 continues to languish below chart resistance.

US DOLLAR TECHNICAL ANALYSIS– Prices are testing above resistance in the 10323-26 area, marked by the 123.6% Fibonacci expansion and the 2012 yearly high. A break higher exposes the 138.2% level at 10375. Near-term rising trend line support is at 10289, with a break below that targeting the 100% Fib 10248.

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices put in a Shooting Star candlestick below resistance at 1523.00, the 123.6% Fibonacci expansion, warning of indecision and hinting a reversal lower may be ahead. Negative RSI divergence reinforces the case for a downside scenario. A break below initial rising trend line support (now at 1518.20) exposes the 100% Fib at 1497.50. Alternatively, a push through resistance aims for the 138.2% mark at 1538.70.

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices broke below support at 1617.84, the 61.8% Fibonacci expansion, exposing the 76.4% level at 1599.10. A further push below that targets a falling channel bottom at 1588.66. The 1617.84 level has been recast as near-term resistance.

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS– Prices are consolidating above support at 95.14, the 23.6% Fibonacci retracement. Resistance remains in the 98.02-21 area (marked by the 23.6% Fib expansion and the January 30 high). A break higher exposes the 38.2% expansion at 99.91. Alternatively, a reversal below 95.14 initially targets the 38.2% retracement at 93.24.

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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