Talking Points:
- US Dollar Attempts a Rebound from 17-Month Support
- SP 500 Indecision Continues Below Peak 2013 Levels
- Gold Signals Reversal, Crude Oil Hits Four-Month High
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices began to cautiously drift higher after putting a Hammer candlestick above support at a rising trend line set from September 2012. Initial resistance lines up at 10576, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 10610. Trend lien support is now at 10538, followed by the February 17 low at 10520.
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.
SP 500 TECHNICAL ANALYSIS – Prices are in the midst of the longest string of consecutive daily gains in seven months. Buyers are testing resistance in the 1840.20-47.90 area, marked by the 50% Fibonacci expansion and the index’s 2013 closing high. Breaking above this boundary initially targets the 61.8% level at 1864.30. Alternatively, a reversal below support in the 1805.70-20.60 area aims for a horizontal pivot level at 1773.40.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick pattern below trend line resistance set from April 2013, hinting a move lower is ahead. Breaking below initial support at 1295.85, the 23.6% Fibonacci retracement, targets the 38.2% level at 1273.49. Trend line resistance is currently at 1328.78.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices continued higher after taking out resistance at 100.73, the December 27 high. The next upside barrier in focus is at 103.29, the 38.2% Fibonacci expansion, with a break above that targeting the 50% level at 104.48. Alternatively, a move below the 23.6% Fib at 101.81 exposes 100.73 anew.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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