THE TAKEAWAY: S&P 500 technical positioning warns a move lower is ahead while the US Dollar is mounting a recovery from a familiar support level.
S&P 500 – Prices put in a Hanging Man candlestick below rising trend line support-turned-resistance set from late December, warning of ebbing bullish momentum and hinting a downswing may be ahead. Near-term support lines up in the 1332.10-1337.60 area. Trend line resistance is now at 1354.70.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices have broken resistance at the top of a falling channel set from early January, with the bulls now poised to threaten 101.28. A daily close above this level targets 103.35. The channel top – now at 100.08 – has now been recast as near-term support.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices appear to be carving out a Head and Shoulders top below resistance at 1763.00, with the peak marked by a Bearish Engulfing candlestick pattern. A daily close below H&S neckline support at 1714.05 is needed for confirmation, exposing a measured target at 1665.03.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices continued higher after putting in a bullish Harami candlestick pattern above support at 9679, taking out Andrew’s Pitchfork support-turned-resistance and exposing the next barrier at 9823. Near-term support is now at 9735.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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