US Dollar Holds Key Trend Line Support as S&P 500 Pulls Back

DailyFX   |  April 30 2012 11:32 EDT

The US Dollar managed to hold above trend-defining rising trend line support set from August 2011 as the S&P 500 pulled back to digest recent gains.

THE TAKEAWAY: The US Dollar managed to hold above trend-defining rising trend line support set from August 2011 as the S&P 500 pulled back to digest recent gains.

S&P 500 – Unchanged from yesterday: “Prices took out resistance at 1399.10, the 61.8% Fibonacci retracement level. The bulls now target the 76.4% level at 1409.00. The 1399.10 level has been recast as near-term support.”

Daily Chart - Created Using FXCM Marketscope 2.0

CRUDE OIL – Prices put in a Hanging Man candlestick below resistance at 104.90, a former support level, to hint that a pullback may be ahead. A turn lower from here sees initial support at 102.20. Alternatively, a breakout higher targets trend line resistance now at 105.91.

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD – Prices took out the top of a falling channel set from early March, with the bulls now aiming to challenge resistance at 1680.00 and 1696.88 marked by key swing highs set on April 12 and March 27. The channel top, now at 1656.74, has been recast as near-term support.

Daily Chart - Created Using FXCM Marketscope 2.0

US DOLLAR – Unchanged from yesterday: “Prices are testing rising trend line set from late July 2011, with a break lower threatening to initiate a material bearish trend change. A confirmed break lower initially exposes 9772. Near-term resistance line up in the 9879-9906 area.”

Daily Chart - Created Using FXCM Marketscope 2.0

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

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