THE TAKEAWAY – S&P 500 technical positioning warns of indecision and hints a pullback may be ahead. The US Dollar is on track to challenge a key support level.
S&P 500 – Prices put in a Doji candlestick below resistance at the top of a rising channel set from late December, pointing to indecision and hinting and move lower may be ahead after two consecutive days of gains. Initial support lines up at the 1300 figure. Channel resistance is now at 1322.40.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices are once again testing support at 97.70 following a rejection at familiar resistance in the 101.28-103.35 region. The downside is reinforced by resistance-turned-support at the top of a falling channel set from mid-November, now at 96.85. A break below the latter boundary initially exposes 95.78, the November 23 close.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices are testing support-turned-resistance in the 1666.37-1677.05 region, with a break higher exposing the 1700/oz figure. Near-term support lines up at 1638.84, with a break below that initially targeting 1615.65.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices broke below the midline and top of a falling channel in place since mid-December, exposing a former Head & Shoulders neckline at 9823 as sellers’ next objective. A breach of this level on a daily closing basis would amount to a meaningful bearish change in tone for the greenback. The channel midline, now effectively at the 9900 figure, has been recast as near-term resistance.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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