THE TAKEAWAY: The US Dollar has initiated a cautious recovery from technical support while the S&P 500 has extended its selloff for a third consecutive day.
US DOLLAR TECHNICAL ANALYSIS– Prices put in a bullish Three Inside Up candlestick pattern above support at 10454, the 14.6% Fibonacci retracement, hinting a bounce may be ahead. Rising channel support-turned-resistance is at 10553, with a push back above that targeting the March 11 high at 10576. Alternatively, a reversal below support exposes the 23.6% Fib at 10379.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices are inching lower after putting in a bearish Harami candlestick pattern. Initial support is 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. A reversal above that targets the index’s record high at 1576.10.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices continued higher as expected after edging above resistance at 1604.87, the 38.2% Fibonacci retracement, will buyers eyeing the 50% level at 1620.28. A further push above that aims for the 61.8% Fib at 1635.68. The 1604.87 mark has been recast support, with a turn back beneath that eyeing the 23.6% retracement at 1585.81.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices reversed lower to test support at the 92.00 figure, marked by the 23.6% Fibonacci expansion. A break beneath that exposes the 38.2% level at 90.73. Near-term resistance is at 94.07, the March 19 swing high.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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