Is Dollar Rebound A Correction Or Trend Change?
Dailyfx | Apr 22, 2014 05:32AM ET
- US Dollar: Is the Rebound a Correction or a Trend Change?
- S&P 500 Hits Two-Week High But Fails to Pierce Resistance
- Crude Oil Sinks to Support Above $103, Gold Eyes April Low
Prices rebounded as expected aftercompleting a bullish Piercing Line candlestick pattern. Initial resistance lines up in the 10469-84 area, marked by the underside of a previously broken falling channel and the 23.6% Fib retracement. A break above the latter barrier exposes the 38.2% Fib at 10536. Near-term support is at 10400, the April 10 low.
Prices rebounded as expected after putting in a Piercing Line candlestick pattern. Buyers are now poised to challenge the 38.2% Fibonacci expansion at 1870.70, with a break above that exposing the 50% level at 1889.70.Near-term support is at 1847.10, the 23.6% Fib, followed by the previously broken top of a rising channel at 1821.50.
Prices reversed sharply downward, edging past support at 1303.93 marked by the 23.6% Fibonacci expansion and exposing the 38.2% level at 1287.14. A further push beneath that aims for the 50% Fib at 1273.57. Alternatively, a reversal back above 1303.93 sees the first layer of resistance at 1331.06, the April 15 high.
Prices turned sharply lower below the 105.00 figure, sinking to challenge support at 103.11 marked by the 23.6% Fibonacci expansion. A break below this boundary initially exposes the 38.2% level at 101.96. Near-term resistance is at 104.96, the April 16 high, followed by the March 3 top at 105.19.
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