MRG MEGA BERJANGKA
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US Dollar Digesting Gains, SPX 500 Searching for a Catalyst

Posted By : MRG Mega Berjangka, Feb 24, 2014 – 16:17

Talking Points:

US Dollar Digesting Last Week’s Five-Day Win Streak
S&P 500 Still Treading Water Below 2013 Peak Highs
Gold, Crude Oil Consolidating at Familiar Chart Levels

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

US DOLLAR TECHNICAL ANALYSIS – Prices edged higher after showing a Hammer candlestick above support at a rising trend line set from September 2012. Prices are correcting slightly lower after securing finish last week with the best performance since late October. A daily close above the 38.2% Fibonacci retracement at 10610 exposes the 50% level at 10638. Alternatively, a reversal back below the 23.6% Fib at 10576 targets the trend line (now at 10543) anew, followed by the February 17 low at 10520.

Forex_US_Dollar_Digesting_Gains_SPX_500_Searching_for_a_Catalyst_body_Picture_5.png, US Dollar Digesting Gains, SPX 500 Searching for a Catalyst

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 consolidating below resistance at 1847.90, the 2013 closing high. Near-term support is at 1821.30, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis targeting a rising trend line at 1810.60 and the 38.2% level at 1805.40. Alternatively, a push above resistance aims for the 38.2% Fib expansion at 1861.80.

Forex_US_Dollar_Digesting_Gains_SPX_500_Searching_for_a_Catalyst_body_Picture_6.png, US Dollar Digesting Gains, SPX 500 Searching for a Catalyst

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 1319.10) initially exposes the 23.6% Fibonacci retracement at 1295.85. Trend line resistance is now at 1337.40, followed by the February 17 high at 1339.85.

Forex_US_Dollar_Digesting_Gains_SPX_500_Searching_for_a_Catalyst_body_Picture_7.png, US Dollar Digesting Gains, SPX 500 Searching for a Catalyst

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices are consolidating below resistance at 103.29, the 38.2% Fibonacci expansion. A break higher targets the 50% level at 104.48. Alternatively, a move below the 23.6% Fib at 101.81 exposes 100.73, the December 27 high.