THE TAKEAWAY: The US Dollar technical positioning hints prices are vulnerable to a correction lower while the S&P 500 continues to push higher through key levels.
US DOLLAR TECHNICAL ANALYSIS– Prices broke resistance at 10504, the 76.4% Fibonacci expansion, with buyers now testing the top of a rising channel top set from early February (now at 10583). A break above that aims for the 100% expansion at 10741. Negative RSI divergence warns of ebbing bullish momentum and hints a reversal downward may be ahead. The 10504 level has been recast as support, with a drop back below that aiming for the channel bottom at 10463.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices continue to push higher, with buyers now testing resistance at 1555.40 marked by the 50% Fibonacci expansion. A break above that targets the 61.8% level at 1572.50. Near-term support is at 1538.60 – the 38.5% Fib – with a reversal below that eyeing the 23.6% expansion at 1517.40.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices continue to consolidate above 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 recover after putting in a bullish Piercing Line candlestick pattern, taking out initial resistance at 91.43 marked by the 23.6% Fibonacci retracement. Buyers now aim to challenge the 38.2% Fib at 92.73. The 91.43 level has been recast as near-term support, with a reversal back below that eyeing the March 4 low at 89.34.
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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