US Dollar Rebound at Risk, Crude Oil and Gold Continue to Sink

Talking Points:

• US Dollar Chart Positioning Warns Rebound May Be Ending
• S&P 500 Continues to Break Resistance, Targeting April Top
• Crude Oil, Gold Prices Continue to Sink Past Chart Barriers

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

US DOLLAR TECHNICAL ANALYSIS – Prices put in a Bearish Engulfing candlestick pattern below support-turned-resistance at the bottom of a falling channel set from mid-February, hinting a move lower may be ahead. Initial support is at 10430, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 10405. A turn above resistance aims for the top of a larger falling channel in play since the beginning of the year, now at 10517.

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 rebounded as expected after putting in a Piercing Line candlestick pattern. A break above the 38.2% Fibonacci expansion at 1870.70 has exposed the 50% level at 1889.70, with a further push beyond that eyeing the 61.8% Fib at 1908.70.Alternatively, a reversal back below 1870.70 targets the 23.6% expansion at 1847.10.

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices continue to edge lower, taking out support at 1287.14 marked by the 38.2% Fibonacci expansion and exposing the 50% level at 1273.57. A further push beneath that aims for the 61.8% Fib at 1260.01. Alternatively, a reversal back above 1287.14 sees the first layer of resistance at 1303.93, the 23.6% expansion.

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS – Prices are turned sharply lower below the 105.00 figure, sinking to challenge support at 101.04 marked by the 50% Fibonacci expansion. A break below this boundary initially exposes the 61.8% level at 100.11. Near-term resistance is at 101.96, the 38.2% Fib, followed by the 23.6% expansion at 103.11.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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