Gold Slides to 3-Month Low, SPX 500 Digesting Sharp Decline

2015-03-10 05:39:00 Ilya Spivak

Talking Points:

US Dollar Resumes Advance After Brief Consolidation
S&P 500 Digesting Following Largest Drop in 6 Weeks
Crude Oil Extends Losses, Gold Slides to 3-Month Low

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US DOLLAR TECHNICAL ANALYSIS – Prices aredigesting gains after issuing the largest daily advance in six weeks. A daily close above the 38.2% Fibonacci expansionat 12107 exposes the 50% level at 12221. Alternatively, a reversal below the 23.6% Fib at 11965 clears the way for a test of the 11854-76 area (14.6% Fibonacci expansion, March 2009 high).

Daily Chart - Created Using FXCM Marketscope

** 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 digesting losses having accelerated into the end of last week. Sellers now aim to challenge the 38.2% Fibonacci retracement at 2066.00, with a break below that on a daily closing basis exposing the 50% level at 2049.50. Alternatively, a reversal back above the 23.6% Fib at 2086.40 targets range support-turned-resistance at 2101.40.

Daily Chart - Created Using FXCM Marketscope

GOLD TECHNICAL ANALYSIS – Prices resumed their push downward to test support at 1163.43, the 50% Fibonacci expansion. A break below this barrier exposes the 61.8% level at 1149.35. Alternatively, a rebound above the 38.2% Fib at 1177.51 targets the 23.6% expansion 1194.94.

Daily Chart - Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS – Prices continue to decline after taking out rising channel support. A break below the 58.17-78 area marked by the 23.6% Fibonacci retracement and the February 6 close exposes the 38.2% level at 56.18. Alternatively, a reversal above the 14.6% Fib at 60.38 targets channel support-turned-resistance at 61.38.