US Dollar Sellers Threaten Five-Week Range Support

Talking Points:

• US Dollar Testing Below Five-Week Range Support
• S&P 500 Consolidation Above 1800.00 Continues
• Gold Hits One-Month High, Oil at November Low

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

US DOLLAR TECHNICAL ANALYSIS – Prices rose as expected after putting in a bullish Piercing Line candlestick pattern. A break below resistance in the 10640-46 area, marked by a range bottom in play since mid-December, a rising channel top and the 23.6% Fibonacci retracement, exposes the 38.2% level at 10585. Alternatively, moving above range top resistance at 10718 targets the channel top at 10755.

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 bounced from support at 1823.80, the 38.2% Fibonacci expansion. A break above 1843.40 – the 50% level – exposes the December 31 high at 1849.10 and the 61.8% Fib at 1863.00. Alternatively a reversal below 1823.80 broadly aims for the 1800 figure.

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices turned higher as expected after putting in a Harami candlestick pattern. A break above resistance in the 1217.75-22.01 area, marked by the December 2 low and the 23.6% Fibonacci retracement, has exposed the 38.2% level at 1248.70. A further push beyond that aims for the 1261.28-70.28 region, bracketed by the October 11 swing low and the 50% Fib.

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL TECHNICAL ANALYSIS– Prices fell as expected after putting in a Bearish Engulfing candlestick pattern. A break below 91.74 – the November 27 swing low – exposes the 50% Fibonacci expansion at 90.50. Reversing back above 92.91, the 38.2% level, aims for the 23.6% Fib at 95.90.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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