Talking Points:
- US Dollar Setup Favors Uptrend Continuation
- S&P 500 Testing Multi-Year Trend Line Support
- Gold Vulnerable, Crude Oil Threatening $98.00
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices put in a bullish Piercing Line candlestick pattern above support at 10661, marked by the bottom of a rising channel set from November and the 23.6% Fibonacci retracement. A break above initial resistance at 10718 – a horizontal pivot – targets the January high at 10756 and the channel top at 10784. Alternatively, reversing below support exposes the 38.2% Fib at 10602.
Daily Chart - Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices are testing support at 1773.30, marked by the 38.2% Fibonacci retracement and a rising trend line set from November. Near-term resistance lines up in the 1809.60-20.60 area, with a break above that exposing the January 15 high at 1851.40. Alternatively, a reversal below that initially exposes the 50% Fib at 1749.20.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern at 1267.71, a support-turned-resistance level set from early October, hinting a move lower is ahead. Initial support is at 1235.57, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 1208.88. A turn above 1267.71 eyes the January 27 high at 1278.72.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices are testing above resistance in the 97.71-81 area, marked by the 38.2% Fibonacci expansion and the January 23 high. A break higher on a daily closing basis initially exposes the 50% level at 98.49. Near-term support is at 95.26, the 38.2% Fib retracement.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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