Talking Points:
- US Dollar Validates Chart Setup, Turns Sharply Lower
- S&P 500 Accelerates Upward, Aiming for February Top
- Gold, Crude Oil Try to Break Near-Term Down Trends
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices reversed downward as expected, making good on bearish cues telegraphed through negative RSI divergence. Near-term support is at 11965, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 11854-78 area (March 2009 high, 14.6% level). Alternatively, a move above the 12107-49 zone (38.2% Fib, March 13 high) clears the way for a test of the 50% expansion at 12221.
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 continued to push higher, with buyers now aiming to challenge the 50% Fibonacci expansion at 2110.00. A daily close above this barrier exposes the 61.8% level at 2126.50. Alternatively, a reversal below the 38.2% Fib at 2093.50 targets the 23.6% expansion at 2073.10.
Daily Chart - Created Using FXCM Marketscope
GOLD TECHNICAL ANALYSIS – Prices are attempting to reverse upward after tagging a three-month low. A daily close above the 1166.67 (channel top, 14.6% Fibonacci retracement) exposes the 23.6% level at 1181.51. Near-term support is at 1142.59, the March 17 low.
Daily Chart - Created Using FXCM Marketscope
CRUDE OIL TECHNICAL ANALYSIS – Prices are attempting to mount an advance anew. A daily close above 56.75 (23.6% Fibonacci expansion, falling trend line) exposes support-turned-resistance at 58.17. Alternatively, a reversal back below the 14.6% Fib at 55.15 targets the March 17 low at 52.55.
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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