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US Dollar Range-Bound as S&P 500 Soars Past 1600 Figure

By , Currency Strategist
06 May 2013 02:59 GMT

THE TAKEAWAY: The US Dollar remains locked in a familiar range while the S&P 500 has finally found the momentum to convincingly break above the 1600 figure.

US DOLLAR TECHNICAL ANALYSIS Prices recovered after putting in a Hammer candlestick above support in the 10424-28 area marked by the 23.6% Fibonacci retracement and the March 22 close. Near-term resistance is at 10488, the 14.6% level, with a break above that targeting the March 11 high at 10576. Alternatively, a drop below 10424 exposes the 38.2% Fib at 10428.

Forex_US_Dollar_Range-Bound_as_SP_500_Soars_Past_1600_Figure_body_Picture_5.png, US Dollar Range-Bound as S&P 500 Soars Past 1600 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices broke resistance marked by the 23.6% Fibonacci expansion (1595.90) and the psychologically significant 1600 figure. Buyers now look to challenge the 38.2% expansion at 1633.20. Alternatively, a reversal back below 1595.90 initially exposes the14.6% expansion at 1572.90.

Forex_US_Dollar_Range-Bound_as_SP_500_Soars_Past_1600_Figure_body_Picture_6.png, US Dollar Range-Bound as S&P 500 Soars Past 1600 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices are consolidating below resistance at 1487.65, the 61.8% Fibonacci retracement. Near-term support is at 1455.94, the 50% level, with a break below that targeting the 38.2% Fib at 1424.23. Alternatively, a move above resistance aims for the 76.4% retracement at 1526.88.

Forex_US_Dollar_Range-Bound_as_SP_500_Soars_Past_1600_Figure_body_Picture_7.png, US Dollar Range-Bound as S&P 500 Soars Past 1600 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices are testing resistance at the 97.00 figure marked by the 76.4% Fibonacci expansion and a falling trend line set from late January. A break above that targets the 100% level at 99.14. Near-term support is at 95.68, the 61.8% Fib, with a reversal beneath that aiming for the 50% expansion at 94.62.

Forex_US_Dollar_Range-Bound_as_SP_500_Soars_Past_1600_Figure_body_Picture_8.png, US Dollar Range-Bound as S&P 500 Soars Past 1600 Figure

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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06 May 2013 02:59 GMT