MRG MEGA BERJANGKA
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Dollar Returns to 17-Month Support, SPX 500 Looking Vulnerable

Posted By : MRG Mega Berjangka, Feb 25, 2014 – 21:11

Talking Points:

US Dollar Pulls Back to Test Key Trend Line Support
S&P 500 Chart Warning of Ebbing Upside Momentum
Gold Still Looks Vulnerable as Crude Oil Tests Support

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

US DOLLAR TECHNICAL ANALYSIS – Prices recoiled from resistance at 10598, the 38.2% Fibonacci retracement, with a close below the 23.6% level at 10568 putting the spotlight on a major trend line set from September 2012 (now at 10545). A further below that eyes the February 17 low at 10520. Alternatively, a reversal above 10598 targets the 50% retracement at 10623.

Forex_Dollar_Returns_to_17-Month_Support_SPX_500_Looking_Vulnerable_body_Picture_5.png, Dollar Returns to 17-Month Support, SPX 500 Looking Vulnerable

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.

S&P 500 TECHNICAL ANALYSIS – Prices continue to test resistance at 1847.90, the 2013 closing high. Near-term support is at 1830.70, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis targeting the intersection of a rising a rising trend line and the 38.2% level at 1813.00. Alternatively, a push above resistance aims for the 38.2% Fib expansion at 1861.80. Negative RSI divergence warns of ebbing upside momentum and hints a turn lower is ahead.

Forex_Dollar_Returns_to_17-Month_Support_SPX_500_Looking_Vulnerable_body_Picture_6.png, Dollar Returns to 17-Month Support, SPX 500 Looking Vulnerable

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices began to pull back as expected after putting in a bearish Dark Cloud Cover candlestick pattern below trend line resistance set from April 2013. Breaking below rising trend line support (now at 1325.25) initially exposes the 23.6% Fibonacci retracement at 1295.85. Trend line resistance is now at 1336.61, followed by the February 17 high at 1339.85.

Forex_Dollar_Returns_to_17-Month_Support_SPX_500_Looking_Vulnerable_body_Picture_7.png, Dollar Returns to 17-Month Support, SPX 500 Looking Vulnerable

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices are testing support at 101.63, the intersection of the 14.6% Fibonacci retracement and a rising trend line set from mid-January. A break below this barrier exposes the 100.53-73 area, marked by the 23.6% level and the December 27 high. Near-term resistance is at 103.41, the February 24 high.