Dollar Soars to Highest Since 2010, S&P 500 Rally Falters

DailyFX

THE TAKEAWAY: The US Dollar punched through another level of chart resistance to hit the highest level since September 2010 while the S&P 500 has reversed sharply lower.

US DOLLAR TECHNICAL ANALYSIS Prices pushed above the 61.8% Fibonacci expansion at 10358, exposing the 76.4% level at 10505. The 10358 level has been recast as near-term support, with a turn back below that aiming for a rising trend line set from early February, now at 10330.

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Forex_Dollar_Soars_to_Highest_Since_2010_SP_500_Rally_Falters_body_Picture_5.png, Dollar Soars to Highest Since 2010, S&P 500 Rally Falters

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S&P 500 TECHNICAL ANALYSIS – Prices broke rising trend line support set from early January, completing a Bearish Engulfing candlestick formation. Initial support from here lines up at 1497.40, the 23.6% Fibonacci retracement. A drop below that targets the 38.2% level at 1476.90. The trend line – now at 1522.40 – has been recast as resistance, with a rebound back above that eyeing the February 20 high at 1531.60.

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Forex_Dollar_Soars_to_Highest_Since_2010_SP_500_Rally_Falters_body_Picture_6.png, Dollar Soars to Highest Since 2010, S&P 500 Rally Falters

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices plunged through support at the bottom of a falling channel set from October and the 100% Fibonacci expansion (1569.04). Sellers now aim to challenge the 1538.71-39.35 area marked by the 123.6% Fib and the May 16 2012 close. The 1569.04 level has been recast as near-term resistance. A push back above that eyes the channel bottom (1584.95) anew.

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Forex_Dollar_Soars_to_Highest_Since_2010_SP_500_Rally_Falters_body_Picture_7.png, Dollar Soars to Highest Since 2010, S&P 500 Rally Falters

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS Prices broke below support at 95.14, the 23.6% Fibonacci retracement, exposing the 38.2% level at 99.91. A further below that aims for the 50% Fib at 91.70. The 95.14 level has been recast as near-term resistance, with a break back above that eyeing the 98.02-21 area (marked by the 23.6% Fib expansion and the January 30 high).

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Forex_Dollar_Soars_to_Highest_Since_2010_SP_500_Rally_Falters_body_Picture_8.png, Dollar Soars to Highest Since 2010, S&P 500 Rally Falters

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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