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Crude Oil Drops Below $100 Anew, SPX 500 Taps New Record High

By , Currency Strategist
02 April 2014 06:32 GMT

Talking Points:

  • US Dollar Treading Water Above March Swing Bottom
  • S&P 500 Breaks Higher from a Triangle Chart Pattern
  • Crude Oil Prices Drop Back Below $100/Barrel Figure

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

US DOLLAR TECHNICAL ANALYSISPrices continue to consolidate in a choppy range below resistance at 10595, the 38.2% Fibonacci retracement. A break below initial support in the 10495-500 area (marked by the 38.2% Fib expansion and the March 19 low) on a daily closing basis will target the 50% level at 10470. Alternatively, a turn back above resistance exposes the 50% Fib retracement at 10626.

Crude-Oil-Drops-Below-100-Anew-SPX-500-Taps-New-Record-High_body_Picture_5.png, Crude Oil Drops Below $100 Anew, SPX 500 Taps New Record High

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 ANALYSIS – Prices broke through the top of a Triangle chart pattern to expose resistance in the 1888.00-60 area, marked by the March 7 high and the 38.2% Fibonacci expansion. A break above this barrier exposes the 50% level at 1905.80. Triangle top resistance-turned-support is now at 1870.70.

Crude-Oil-Drops-Below-100-Anew-SPX-500-Taps-New-Record-High_body_Picture_6.png, Crude Oil Drops Below $100 Anew, SPX 500 Taps New Record High

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices reversed downward as expected after putting in a Bearish Engulfing candlestick pattern. A break below the 23.6% Fibonacci expansion at 1319.01 has exposed the 38.2% level at 1273.88, with a further move below that eyeing the 50% Fib at 1237.40. Alternatively, a reversal back above 1319.01 aims for trend line support-turned-resistance now at 1353.40.

Crude-Oil-Drops-Below-100-Anew-SPX-500-Taps-New-Record-High_body_Picture_7.png, Crude Oil Drops Below $100 Anew, SPX 500 Taps New Record High

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices reversed sharply lower, with sellers now testing support at 99.21 marked by a rising trend line and the 38.2% Fibonacci expansion. A break below this boundary targets the 50% level at 98.28. Alternatively, a reversal above the 23.6% Fib at 100.36 aims for the March 28 high at 102.21.

Crude-Oil-Drops-Below-100-Anew-SPX-500-Taps-New-Record-High_body_Picture_8.png, Crude Oil Drops Below $100 Anew, SPX 500 Taps New Record High

Daily Chart - Created Using FXCM Marketscope 2.0

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

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02 April 2014 06:32 GMT