US Dollar at Trend-Defining Support, S&P 500 Retakes 1400 Figure

THE TAKEAWAY: The US Dollar is testing trend-defining support threatening to mark a major bearish reversal while the S&P 500 is working to build momentum above 1400.

S&P 500 – Prices took out resistance at 1399.10, the 61.8% Fibonacci retracement level. The bulls now target the 76.4% level at 1409.00. The 1399.10 level has been recast as near-term support.

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL – Prices took out the first layer of falling trend line resistance to challenge 104.90, a former support level. A break above this boundary targets another falling trend line at 106.01. Near-term support stands at 102.10.

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD – Prices are testing the top of a falling channel set from early March now at 1661.75, with a break higher exposing 1680.35. Support lines up at 1638.02, the 23.6% Fibonacci expansion. Absent a daily close above the channel top, the overall trend remains bearish.

Daily Chart - Created Using FXCM Marketscope 2.0

US DOLLAR – Prices are testing rising trend line set from late July 2011, with a break lower threatening to initiate a material bearish trend change. A confirmed break lower initially exposes 9772. Near-term resistance line up in the 9879-9906 area.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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