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US Dollar Waiting for Direction Cues, Gold May Be Topping

By , Currency Strategist
18 March 2014 05:06 GMT

Talking Points:

  • US Dollar Waiting for Direction Cues Near Monthly Bottom
  • S&P 500 Recovers to Retest Recently Broken Chart Support
  • Gold Positioning Signals Weakness, Crude Oil May Bounce

Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **

US DOLLAR TECHNICAL ANALYSISPrices are stalling near 10502,the March 7 low, after edging below the 23.6% Fibonacci expansion at 10529. Support is reinforced by the 38.2% Fib at 10492. A push beneath the latter level targets the 50% expansion at 10462. Alternatively, a reversal above 10529 opens the door for a test of falling trend line resistance at 10572.

Forex-US-Dollar-Waiting-for-Direction-Cues-Gold-May-Be-Topping_body_Picture_5.png, US Dollar Waiting for Direction Cues, Gold May Be Topping

Daily Chart - Created Using FXCM Marketscope 2.0

** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.

S&P 500 TECHNICAL ANALYSISPrices rebounded from support at 1831.00, the 23.6% Fibonacci retracement. Resistance is at 1866.00, the 23.6% Fib expansion level, with a break above that aiming for the underside of a recently broken rising channel at 1873.20. Alternatively, a turn below support exposes the 50% retracement at 1813.30.

Forex-US-Dollar-Waiting-for-Direction-Cues-Gold-May-Be-Topping_body_Picture_6.png, US Dollar Waiting for Direction Cues, Gold May Be Topping

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern, hinting at a reversal ahead. Initial support is in the 1345.41-50.94 area, marked by a falling trend line set from April 2013 and the top of a rising channel established from mid-December. A break downward exposes the 38.2% Fibonacci retracement at 1310.56. Near-term resistance is at 1391.96, the March 17 high.

Forex-US-Dollar-Waiting-for-Direction-Cues-Gold-May-Be-Topping_body_Picture_7.png, US Dollar Waiting for Direction Cues, Gold May Be Topping

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – The appearance of a Morning Star candlestick pattern suggests a rebound may be ahead. Initial resistance is in the 100.73-83 area, marked by the December 27 high and the 23.6% Fibonacci expansion. A break above that aims for the 38.2% level at 102.87. Near-term support is at 97.53, the March 12 low.

Forex-US-Dollar-Waiting-for-Direction-Cues-Gold-May-Be-Topping_body_Picture_8.png, US Dollar Waiting for Direction Cues, Gold May Be Topping

Daily Chart - Created Using FXCM Marketscope 2.0

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

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18 March 2014 05:06 GMT