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US Dollar Working to Rebuild Upside Momentum, S&P 500 Edging Higher

By , Currency Strategist
02 April 2012 02:20 GMT

THE TAKEAWAY: The US Dollar continues to look for bullish momentum as buyers defend key support but fail to mount a meaningful advance. The S&P 500 is edging higher.

S&P 500 – Prices took out 50% Fibonacci expansion resistance at 1411.10 to expose the 61.8% level at 1415.70. A break above this juncture initially targets the 1421.40. The 1411.10 level has been recast as near-term support.

US_Dollar_Working_to_Rebuild_Upside_Momentum_SP_500_Endging_Higher_body_Picture_5.png, US Dollar Working to Rebuild Upside Momentum, S&P 500 Edging Higher

4hr Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL Last week, prices completed a Descending Triangle chart pattern with a break through support at 104.75, the 38.2% Fibonacci retracement level, implying a measured target at 99.57. An inverted Hammer candlestick above interim support at 102.97, the 50% Fib, hints a near-term bounce may be ahead to retest 104.75 before the larger down move resumes.

US_Dollar_Working_to_Rebuild_Upside_Momentum_SP_500_Endging_Higher_body_Picture_6.png, US Dollar Working to Rebuild Upside Momentum, S&P 500 Edging Higher

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD Prices found support at 1658.49, the 23.6% Fibonacci expansion level, and swung back above resistance at 1690.04. The bulls now appear set to challenge the 38.2% Fib retracement at 1690.04. Alternatively, a break back below 1658.49 targets 1634.62.

US_Dollar_Working_to_Rebuild_Upside_Momentum_SP_500_Endging_Higher_body_Picture_7.png, US Dollar Working to Rebuild Upside Momentum, S&P 500 Edging Higher

Daily Chart - Created Using FXCM Marketscope 2.0

US DOLLAR Prices are looking to rebuild momentum after putting in a Bullish Engulfing candlestick at the confluence of trend line support and clearing initial resistance at 9935. A clear violation of the series of lower highs from mid-March and a break above the 23.6% Fibonacci retracement at 9997 would serve as confirmation of bullish resumption.

US_Dollar_Working_to_Rebuild_Upside_Momentum_SP_500_Endging_Higher_body_Picture_8.png, US Dollar Working to Rebuild Upside Momentum, S&P 500 Edging Higher

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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02 April 2012 02:20 GMT