Talking Points:
- US Dollar Advances Most in 16 Months, Hits Four-Year High
- S&P 500 Attempting to Break Out of Two-Week Down Trend
- Gold Aims to Extend Decline After Sliding to a 10-Month Low
US DOLLAR TECHNICAL ANALYSIS – Prices issued the largest daily gain in 16 months, rising to the strongest level since June 2010. Near-term resistance is at 11176, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% threshold at 11232. Alternatively, a turn below the 23.6% Fib at 11108 opens the door for a challenge of the 14.6% threshold at 11108.
Daily Chart - Created Using FXCM Marketscope 2.0
S&P 500 TECHNICAL ANALYSIS – Prices are testing above falling channel resistance (1965.10) to challenge the 38.2% Fibonacci expansion at 1974.00. A break above this barrier on a daily closing basis exposes the 50% level at 1989.10. Alternatively, a reversal below the 23.6% Fib at 1955.30 targets the 14.6% expansion at 1943.80.
Daily Chart - Created Using FXCM Marketscope 2.0
Gold TECHNICAL ANALYSIS – Prices dropped to the lowest level in 10 months, with traders now aiming to challenge the 1177.24-78.86 zone marked by the December 2013 low and the 38.2% Fibonacci expansion. A break below this boundary exposes the 50% level at 1163.29. Alternatively, a reversal above the 23.6% Fib at 1194.51 targets the 14.6% expansion at 1205.15.
Daily Chart - Created Using FXCM Marketscope 2.0
Crude Oil TECHNICAL ANALYSIS – Prices are aiming to challenge support at 90.11, the 38.2% Fibonacci expansion. A break below that exposes the 50% level at 87.73. Alternatively, a reversal above the 23.6% Fib at 93.04 aims for the 14.6% expansion at 94.85.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com