THE TAKEAWAY: The US Dollar has produced a bearish chart pattern hinting a reversal downward is ahead. The S&P 500 is testing higher en route to the index’s record high.
US DOLLAR TECHNICAL ANALYSIS– Prices appear to have completed a bearish Head and Shoulders chart pattern. Initial support is at 10423, the 23.6% Fibonacci retracement. A break beneath that exposes the 38.2% Fib at 10329 and the implied H&S target at 10312. Near-term resistance is at 10514, the March 20 high.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices are testing resistance at 1565.60, the 38.2% Fibonacci expansion, with a break higher targeting the 1575.00-76.10 area marked by the 50% level and the index’s record high. Near-term support is at 1534.90, the March 18 low.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are approaching support at 1597.76, the 14.6% Fibonacci expansion, with a break lower exposing the 23.6% level at 1586.30. Near-term resistance is at 1616.98, the March 21 high. A move above that aims for a longer-term falling trend line at 1642.66.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices are testing resistance at 94.07, the March 19 swing high, with a break higher on a daily closing basis targeting 95.51. A break above that targets trend line resistance at 96.33. Near-term support is at 91.97, the 23.6% Fibonacci expansion.
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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