THE TAKEAWAY: The US Dollar found support and corrected higher to start the trading week as the S&P 500 sank amid risk aversion surrounding the weekend’s Cyprus bailout news.
US DOLLAR TECHNICAL ANALYSIS– Prices turned lower as expected, taking out support at the bottom of a rising channel set from late January. Prices are now bouncing from initial support at 10454, the 14.6% Fibonacci retracement, aiming to retest this barrier (now at 10528). A push back above that targets the March 11 high at 10576. Alternatively, a move below support targets the 23.6% Fib at 10379.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices turned sharply lower amid risk aversion surrounding Cyprus bailout news over weekend. Sellers are eyeing initial support at 1531.50, the 14.6% Fibonacci retracement, with a break below that exposing the 23.6% level at 1511.60. Near-term resistance is at 1563.90, the March 15 high, with a reversal above that eyeing the index’s record high at 1576.10.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices broke above resistance at 1585.81, the 23.6% Fibonacci retracement, exposing the 38.2% level at 1604.84. A further push above that aims for the 50% Fib at 1620.28. The 1585.81 has been recast support, with a turn back beneath that eyeing the 14.6% retracement at 1574.06.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices are turning lower from resistance at 93.69, the 50% Fibonacci retracement, with sellers testing below the 38.2% level at 92.66. A confirmed break below this boundary on a daily closing basis exposes the 23.6% Fib at 91.39.
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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