THE TAKEAWAY: US Dollar technical positioning hints a larger correction lower may be ahead while the SP 500 appears poised to continue pushing upward.
US DOLLAR TECHNICAL ANALYSIS– Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at 10822, the 50% Fibonacci expansion, hinting a move lower is ahead. Initial support is at 10722, the 38.2% level, with a break below that targeting the 23.6% Fib at 10599. Alternatively, a reversal above resistance exposes the 61.8% expansion at 10922.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices broke above resistance at 1663.30, the 50% Fibonacci expansion, exposing the 61.8% level at 1693.50. This barrier is reinforced by the 1700 figure, with a break above that eyeing the 76.4% Fib at 1730.80. Alternatively, a move back below 1663.30 (now recast as support) aims for the 38.2% expansion at 1633.20.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices broke above resistance in the 1375.16-77.33 area and completed a Bullish Engulfing candlestick pattern, hinting at further gains ahead. Initial resistance is at 1401.63, with a break above that targeting 1421.26. Alternatively, a reversal back beneath 1375.16 exposes 1340.31.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS– Prices broke above resistance at 96.50, the 38.2% Fibonacci expansion (a barrier reinforced by a falling trend line set from late January). Buyers now aim to challenge the 50% level at 97.85, with a break above that targeting the 61.8% Fib at 99.21. Alternatively, a reversal back beneath 96.50 eyes the 23.6% expansion at 94.82.
Daily Chart – Created Using FXCM Marketscope 2.0
— 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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