THE TAKEAWAY: The US Dollar is locked in a choppy consolidation range despite sharp downward breakouts in gold and crude oil prices as well as the SP 500.
US DOLLAR TECHNICAL ANALYSIS– Prices are testing resistance at 10494, the 23.6% Fibonacci expansion, with a break above that exposing the April 8 swing high at 10538. Near-term support is at 10467, the 38.2% level. A reversal below that initially targets the 50% Fib at 10446.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices pushed sharply lower after putting in a Bearish Engulfing candlestick pattern below the 1600 figure. Initial support lines up at 1537.30, the 23.6% Fibonacci retracement, with a break below that targeting the 38.2% level at the 1500.00 mark. Significant resistance is at 1597.60, the April 11 high.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices took out support at 1397.50, the 100% Fibonacci expansion. Sellers now target the 123.6% mark at 1303.50, with a break below that aiming for the 138.2% Fib at 1245.35. The 1397.50 mark has been recast as near-term resistance. A reversal back above that eyes the 76.4% expansion at 1491.50.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices declined as expected after putting in a Bearish Engulfing candlestick pattern below resistance at the underside of a previously broken rising trend line set from the March 4 low. Sellers are now testing below support is at 86.67, the 123.6% Fibonacci expansion, with a break below that exposing the 138.2% level at 85.38. Near-term resistance is at 88.77, the 100% Fib.
Daily Chart – Created Using FXCM Marketscope 2.0
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— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
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