THE TAKEAWAY: The US Dollar validated a bullish chart setup carved out over the past week, with prices gaining momentum to challenge the 2011 yearly high.
S&P 500 – Prices are testing through 38.2% Fibonacci expansion support at 1409.60, with a break below that initially exposing the 50% Fib at 1405.80. For now, near-term resistance remains at 1414.50 marked by the 23.6% expansion but a close below 1409.60 would revise it down to that level.
4hr Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices recoiled from 38.2% Fibonacci retracement resistance at 105.28 and are now testing below near-term support at 104.04 marked by the 23.6% level. A break below this juncture exposes falling channel support set from late February, now at 102.66.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices reversed lower through support at 1658.51, the 23.6% Fibonacci expansion level, with sellers now aiming to retest the 38.2% Fib at 1634.76 anew. A break below this barrier targets the 50% Fib at 1615.46. The 1658.51 level has been recast as near-term resistance.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices took out falling trend line resistance set from mid-March to meet 23.6% Fibonacci retracement at 9997. A confirmed break on a daily close above this boundary exposes recent medium-term range highs in the 10081-10134 area. Near-term support remains at 9935 for now but would be adjusted higher to 9997 on a break above that level.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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