MRG MEGA BERJANGKA
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US Dollar Breaks Critical Support, SPX 500 Keeps Grinding Higher

Posted By : MRG Mega Berjangka, Mar 07, 2014 – 13:51

Talking Points:

US Dollar Breaks Key Support, Warns of Trend Change
S&P 500 Continues to Grind Higher, Sets Upside Record
Gold at Risk of Losses, Crude Oil Finds Interim Support

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

US DOLLAR TECHNICAL ANALYSIS – Prices broke below rising trend line set from September 2012, hinting the medium-term trend has changed gears. Prices are testing initial support at 10525, the 38.2% Fibonacci expansion, with a break below that targeting the 50% level at 10497. Alternatively, a reversal back above the trend line (now at 10563) eyes the February 27 high at 10615.

Forex_US_Dollar_Breaks_Critical_Support_SPX_500_Keeps_Grinding_Higher_body_Picture_5.png, US Dollar Breaks Critical Support, SPX 500 Keeps Grinding Higher

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 are testing resistance at 1883.80 marked b the 38.2% Fibonacci expansion and a rising channel top. A break above this boundary exposes the 50% level at 1899.20. Alternatively, a reversal below support at 1864.80, the 23.6% Fib, aims for the channel bottom at 1853.10.

Forex_US_Dollar_Breaks_Critical_Support_SPX_500_Keeps_Grinding_Higher_body_Picture_6.png, US Dollar Breaks Critical Support, SPX 500 Keeps Grinding Higher

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at a falling trend line set from April 2013, hinting a turn lower may be ahead. Negative RSI divergence bolsters the case for a downside scenario. Breaking below the 23.6% Fibonacci retracement at 1313.14 exposes the 38.2% level at 1287.48. Trend line resistance is now at 1354.74.

Forex_US_Dollar_Breaks_Critical_Support_SPX_500_Keeps_Grinding_Higher_body_Picture_7.png, US Dollar Breaks Critical Support, SPX 500 Keeps Grinding Higher

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices turned lower as expected after forming a bearish Dark Cloud Cover candlestick pattern. Sellers are testing support at 101.73, the December 27 high, a barrier reinforced by the 38.2% Fibonacci retracement at 99.85. A break below the latter level exposes the 50% Fib at 98.20. Alternatively, a turn back above the 23.6% retracement at 101.89 eyes rising trend line support-turned-resistance at 103.43.