Tanalys

US Dollar Recovery Signaled Ahead, SPX 500 Continues to Stall

Talking Points:

Can’t access to the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **

US DOLLAR TECHNICAL ANALYSISPrices put in a bullish Morning Star candlestick pattern above support at 10520, the February 17 low, hinting a move higher may be ahead. Near-term resistance is at 10599, the 38.2% Fibonacci retracement, with a break above that initially exposing the 50% level at 10629.

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 ANALYSISPrices continue to tread water below resistance at 1883.80, marked by a rising channel top and the 38.2% Fibonacci expansion. A topside breakout initially targets the channel top at 1891.50, followed by the 50% level at 1899.20. Near-term support is at 1864.80, the 23.6% Fib.

Daily Chart – Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices are hinting that a turn lower is ahead after showing a bearish Dark Cloud Cover candlestick pattern below resistance at a falling trend line set from April 2013. Negative RSI divergence bolsters the case for a downside scenario. Initial support is at 1313.14, the 23.6% Fibonacci retracement, with a break below that exposing the 38.2% level at 1287.48. Trend line resistance is now at 1354.05.

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. Prices found interim support in the 100.23-73 area, marked by the 23.6% Fibonacci expansion and the December 27 high. A break downward targets the 38.2% Fib at 97.17. Rising trend line support-turned-resistance is at 104.06.

Daily Chart – Created Using FXCM Marketscope 2.0

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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