Talking Points:
- US Dollar Still Looking for Direction in a Choppy Range
- SP 500 Breaks Support, Sets Up For Continued Weakness
- Crude Oil Selloff Pauses Near Support Above $97.00 Mark
Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices continue to to tread water in a familiar range between the February 17 low at 10520 and the 38.2% Fibonacci retracement at 10599. A push above resistance initially exposes the 50% level at 10629. Alternatively, a drop through support on a daily closing basis targets the 38.2% Fib expansion at 10492.
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 turned sharply lower, taking out support at the bottom of a rising channel set from mid-February and the 23.6% Fibonacci retracementat 1853.00. Sellers now aim to challenge the 38.2% level at 1831.00, with a push below that aiming for the 50% Fib at 1813.30. Alternatively, a move back above 1853.00 sees channel support-turned-resistance at 1867.60.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are testing resistance at 1371.70, the 38.2% Fibonacci expansion. A break above this boundary exposes the 50% level at 1385.46. Near-term support is at 1354.66, marked by the 23.6% Fib and a falling trend line set from April 2013. A reversal below that initially targets rising channel resistance-turned-support at 1341.51.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – The formation of a Dark Cloud Cover candlestick pattern preceded a turn lower, as expected. Sellers are now approaching support at 97.17, the 38.2% Fibonacci expansion, with a break below that exposing the 50% level at 94.69. Near-term resistance is in the 100.23-73 area, marked by the 23.6% Fib and the December 27 high.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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