THE TAKEAWAY: The US Dollar is waiting for bullish follow-through as prices drift along rising trend support while the S&P 500 remains capped by familiar range resistance.
S&P 500 – Prices are retesting support-turned-resistance in the 1391.20-1392.10 area marked by the 50% Fibonacci retracement and the former neckline of a Head and Shoulders top pattern. A break above this boundary initially exposes the 61.8% level at 1399.10. Initial support lines up at 1383.20, the 38.2% Fib, with breach below that seeing near-term support at 1373.30.
Daily Chart - Created Using FXCM Marketscope 2.0
Weekly Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL – Prices are testing resistance at 104.90 after putting in a Bullish Engulfing candlestick above rising trend line support set from mid-December. A break above this level exposes falling trend line barriers at 105.41 and 106.56. Support is now at 101.38.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD – Prices are testing support at 1638.02, the 23.6% Fibonacci expansion, after putting in a Bearish Engulfing candlestick pattern below falling trend line resistance set from early March. A break lower exposes the 38.2% level at 1612.02. Trend line resistance is now at 1669.50.
Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR – Prices put in a bullish Piercing Line candlestick pattern above rising trend line support set from early February, hinting a move higher is ahead. Initial resistance stands at 9996, the 50% Fibonacci expansion level. Trend line support is now at 9923.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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