US Dollar Falters at Chart Resistance, S&P 500 Losses Momentum

2013-04-10 04:28:00 Ilya Spivak, Head Strategist, APAC

THE TAKEAWAY: The US Dollar was rejected sharply lower at technical resistance while S&P 500 positioning points to indecision, warning of possible weakness ahead.

US DOLLAR TECHNICAL ANALYSIS– Prices recoiled from resistance below the 23.6% Fibonacci expansion at 10547, slipping back below the 14.6% level at 10487 and exposing a formerly broken rising channel top at 10440. A drop beneath that eyes the April 2 low at 10391. Alternatively, a reversal back above 10487 targets 10547 anew.

Forex_US_Dollar_Falters_at_Chart_Resistance_SP_500_Losses_Momentum_body_Picture_5.png, US Dollar Falters at Chart Resistance, S&P 500 Losses Momentum

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices put in a Spinning Top candlestick below resistance at 1573.30, the 38.2% Fibonacci expansion, pointing to indecision and hinting a move lower may be ahead. Near-term support is at 1560.10, the 23.6% Fib, with a move back below that eyeing the 14.6% expansion at 1552.00. Alternatively, a break above resistance exposes the 50% level at 1583.90.

Forex_US_Dollar_Falters_at_Chart_Resistance_SP_500_Losses_Momentum_body_Picture_6.png, US Dollar Falters at Chart Resistance, S&P 500 Losses Momentum

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices rebounded as expected after putting in a Hammer candlestick. The bulls have now cleared the 23.6% Fibonacci expansion at 1583.37, exposing the 14.6% level at 1596.19. A further push above that aims for rising trend line support-turned-resistance at 1604.64. The 1583.37 mark has been recast as near-term support, with a move back below that eyeing the 38.2% Fib at 1562.58.

Forex_US_Dollar_Falters_at_Chart_Resistance_SP_500_Losses_Momentum_body_Picture_7.png, US Dollar Falters at Chart Resistance, S&P 500 Losses Momentum

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS– Prices bounced from support at 91.96, the 38.2% Fibonacci expansion. Near-term resistance is at 94.35, marked by the underside of a formerly broken rising trend line and the 23.6% level. A break above that broadly exposes falling trend line at 97.52. Alternatively, a reversal beneath support targets the 50% expansion at 90.03.