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Dollar Eyes Resistance as S&P 500 Sinks Back to Key Support

Ilya Spivak

THE TAKEAWAY: The US Dollar has moved to challenge the upper boundary of its recent range while the S&P 500 has retreated to a trend-defining support level.



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.


Forex_Dollar_Eyes_Resistance_as_SP_500_Sinks_Back_to_Key_Support_body_Picture_4.png, Dollar Eyes Resistance as S&P 500 Sinks Back to Key Support

Daily Chart - Created Using FXCM Marketscope 2.0




S&P 500 TECHNICAL ANALYSIS – Prices are hovering above support above 1537.30, the 23.6% Fibonacci retracement. A break below this boundary targets the 38.2% level at 1500.00. Near-term resistance is at 1597.60, the April 11 high.


Forex_Dollar_Eyes_Resistance_as_SP_500_Sinks_Back_to_Key_Support_body_Picture_3.png, Dollar Eyes Resistance as S&P 500 Sinks Back to Key Support

Daily Chart - Created Using FXCM Marketscope 2.0



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.


Forex_Dollar_Eyes_Resistance_as_SP_500_Sinks_Back_to_Key_Support_body_Picture_2.png, Dollar Eyes Resistance as S&P 500 Sinks Back to Key Support

Daily 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 have now cleared support at 87.38, the 76.4% Fibonacci retracement, exposing the 84.04-85.19 area marked by the November 7 and December 11 2012 swing lows. The 87.38 mark has been recast as near-term resistance, with a move back above that eyeing the 61.85% Fib at 89.45.


Forex_Dollar_Eyes_Resistance_as_SP_500_Sinks_Back_to_Key_Support_body_Picture_1.png, Dollar Eyes Resistance as S&P 500 Sinks Back to Key Support

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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