THE TAKEAWAY: The S&P 500 is on the verge of confirming a topping chart formation while the US Dollar is inching toward key resistance in place since early 2011.
S&P 500 – Unchanged from yesterday: “Prices appear to be carving out a Head and Shoulders top chart formation. Confirmation is required on a daily close below neckline support at 1392.10, which would expose a measured downside objective at 1359.30. Near-term resistance lines up at 1402.90, the 23.6% Fibonacci expansion level.”
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices recovered from support in the 101.19-101.28 area to retest former resistance in the 102.97-103.21 region. A break above this boundary exposes the 38.2% Fibonacci retracement at 104.75. Alternatively, a reversal through support targets a rising trend line set from mid-December now at 99.84
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices found interim support at 1615.46, the 50%Fibonacci expansion, rising toward near-term resistance at 1634.76 marked by the 38.2% level. A break above this boundary targets the 23.6% Fib at 1658.51. Alternatively, a breach of support targets the 61.8% expansion at 1596.16.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices are inching higher to challenge the 10081-10134 area that has capped the greenback since mid-January 2011. The outer boundary of the region is reinforced by the 61.8% Fibonacci expansion at 10071. Near-term support lines up at 9996, the 38.2% Fib.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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