THE TAKEAWAY: US Dollar technical positioning hints a reversal lower may be ahead. The S&P 500 also appears vulnerable having hit the highest level in over five years.
US DOLLAR TECHNICAL ANALYSIS– Prices are testing resistance at 10504, the 76.4% Fibonacci expansion. A break higher targets a rising channel top at 10546. Channel support is at 10439, with a reversal below that aiming for the 61.8% Fib at 10359.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices are testing resistance at the 38.2% Fibonacci expansion (1538.70), a barrier reinforced by a formerly broken rising trend line (1546.20). Negative RSI divergence warns of ebbing bullish momentum and hints a turn lower may be ahead. Near-term support is at 1517.50, the 23.6% level. Alternatively, a break above 1546.20 aims for the 50% Fib at 1555.60.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices mounted a shallow recovery from support at 1570.37, the 38.2% Fibonacci expansion. Near-term resistance is at 1589.36, the 23.6% level, with a break above that aiming for the February 26 high at 1620.09. Alternatively, a break downward initially aims for the 61.8% Fib at 1554.62.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices continue to consolidate below resistance at 91.13, the 50% Fibonacci retracement. A break above this barrier targets the 38.2 % level at 92.80. Near-term support is at 89.45, the 61.8% Fib, with a drop below that aiming for the 76.4% retracement at 87.38.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
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