Talking Points:
- US Dollar Expected to Renew Advance After Correction
- S&P 500 Eyeing Upside Chart Barriers Above 1900.00
- Crude Oil Rally Held up at Resistance, Gold Flat-Lining
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices are aiming upward after setting a double bottom at 10375 and breaking through the top of a falling channel guiding the down trend since January. Buyers have overcome resistance in the 10474-95 area, opening the door for a challenge of the next key threshold in the 10589-619 region. A further break beyond that exposes year-to-date highs above 10700. Alternatively, a reversal back below 10474 targets channel top support-turned-resistance at 10439.
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 broke resistance in the 1897.40-1899.10 area, marked by the 38.2% Fibonacci expansion and the April 4 high, exposing the 50% level at 1908.40. A further push beyond that targets the 61.8% Fib at 1919.40. Alternatively, a reversal back below 1897.40 clears the way for a move back to the 1883.80-88.60 region, bracketed by the March 7 high and the 23.6% expansion.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are consolidating below resistance in the 1302.18-15.60 area, marked by the top of a descending Triangle chart formation and the 38.2% Fibonacci retracement. A break above that on daily closing basis targets the 50% level at 1330.18. The descending Triangle argues in favor of bearish continuation however (though confirmation is absent for now). Near-term support is at 1277.00, the Triangle bottom.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices are testing resistance in the 104.24-38 area, marked by a falling trend line set from early March and the 76.4% Fibonacci expansion. A break above this barrier initially exposes the 100% level at 105.16. Near-term support is at 103.67, the 61.8% Fib, with a move back below that eyeing the 50% expansion at 103.20.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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