Gold Chart Setup Hints at Bounce Ahead, US Dollar Drifting to Range Top

Talking Points:

• US Dollar Drifting Upward Toward Recent Range Top
• S&P 500 Aiming Higher After Chart Resistance Break
• Gold Technical Positioning Hints at a Bounce Ahead

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

US DOLLAR TECHNICAL ANALYSIS – Prices are still trading sideways in a choppy range below resistance at 10595, the 38.2% Fibonacci retracement. A push through initial support in the 10495-500 area, marked by the 38.2% Fib expansion and the March 19 low, targets the 50% level at 10470. Alternatively, a turn back above resistance exposes the 50% Fib retracement at 10626.

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 broke through the top of a Triangle chart pattern and cleared resistance in the 1888.00-60 area, marked by the March 7 high and the 38.2% Fibonacci expansion. Buyers now aim to challenge the 50% level at 1905.80, with a further push above that eyeing the 61.8% Fib at 1923.50. Alternatively, a turn back below 1888.00 clears a path to retest the Triangle top, now at 1868.90.

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices turned lower expected but a Bullish Engulfing candlestick pattern above support at 1273.88, the 38.2% Fibonacci expansion, now hints a bounce may be ahead. Near-term resistance is at 1319.01, the 23.6% level, with a break above that aiming for trend line support-turned-resistance at 1357.12. Alternatively, a reversal below support eyes the 50% Fib at 1237.40.

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices are testing resistance at 100.64, the 23.6% Fibonacci expansion, with a break above that targeting the 102.21-68 area marked by the March 28 high and the 38.2% level. Trend line support is now at 99.31, followed by the April 2 low at 98.84.

Daily Chart - Created Using FXCM Marketscope 2.0

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

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak