THE TAKEAWAY: The US Dollar has found fuel for a recovery from support as gold, crude oil and the SP 500 are accelerating downward to start the trading week.
US DOLLAR TECHNICAL ANALYSIS– Prices are correcting higher from falling channel resistance-turned-support set from early March (now at 10444). Near-term resistance is at 10546, the the 23.6% Fibonacci expansion, with a break above that exposing the 38.2% level at 10642. Alternatively, a reversal below 10444 aims for the April 2 low at 10391.
Daily Chart – Created Using FXCM Marketscope 2.0
SP 500 TECHNICAL ANALYSIS – Prices are sinking after putting in a Bearish Engulfing candlesick pattern below resistance at 1594.50, the 61.8% Fibonacci expansion. Sellers are now testing below support at 1583.90, the 50% level, with a break below that exposing the 38.2% Fib at 1573.30. Alternatively, a reversal above 1594.50 aims for the 76.4% expansion at 1607.70.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are testing long-term support at 1397.50, the 100% Fibonacci expansion. A break lower on a weekly closing basis exposes the 123.6% level at 1303.50. The first layer of major resistance lines up at 1491.50, the 76.4% Fib.
Weekly 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 88.77, the 100% Fibonacci expansion, with a break below that exposing the 123.6% level at 86.67. Near-term resistance is at 90.87, the 76.4% 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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