Dollar Looks for Direction as Gold, S&P 500 Find Interim Support

DailyFX

THE TAKEAWAY: The US Dollar remains locked in choppy consolidation while gold and the S&P 500 have found interim support after sharp losses earlier in the week.

US DOLLAR TECHNICAL ANALYSIS Prices continue to consolidate in a choppy range below resistance at 10547, the 23.6% Fibonacci expansion. A break above that aims for the 38.2% level at 10643. Trend line support is at 10438, with a reversal beneath that eyeing the April 2 low at 10391.

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S&P 500 TECHNICAL ANALYSIS – Prices found support above 1537.30, the 23.6% Fibonacci retracement, and corrected higher. Near-term resistance is at 1597.60, the April 11 high. A return of selling pressure that takes prices below 1537.30 targets the 38.2% level at 1500.00.

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GOLD TECHNICAL ANALYSIS Prices are staging a shallow recovery from support at 1341.88, the 114.6% Fibonacci expansion. Near-term resistance is at 1376.93, the 100% level, with a break above that exposing the 1400/oz figure and the 76.4% Fib at 1433.58. Alternatively, a reversal below support targets the 123.6% Fib at 1320.28.

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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. Initial support has been found at 87.38, the 76.4% Fibonacci retracement. Near-term resistance is at 89.45, the 61.8% level, with a reversal above that eyeing the 50% Fib at 91.13. Alternatively, a push downward through support targets swing lows at 85.19 and 84.04.

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Forex_Dollar_Looks_for_Direction_as_Gold_SP_500_Find_Interim_Support_body_Picture_1.png, Dollar Looks for Direction as Gold, S&P 500 Find Interim Supp...

Daily Chart - Created Using FXCM Marketscope 2.0

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--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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