Forex: US Dollar Retreats to Chart Support, Gold May Fall Further

London (Mar 27) US Dollar Technical Analysis – Prices continue to oscillate in a choppy range below resistance at 10595, the 38.2% Fibonacci retracement. A break below near-term support in the 10495-500 area, marked by the 38.2% Fib expansion and the March 19 low, exposes the 50% mark at 10470. Alternatively, a reversal above resistance aims for the 50% Fib retracement at 10626.

S&P 500 TECHNICAL ANALYSIS – Prices continue to consolidate below support-turned-resistance at the bottom of a rising channel set from mid-February (now at 1892.60), a level reinforced by the March 7 high at 1888.60. Near-term support is in the 1847.90-53.00 area, marked by the 23.6% Fibonacci expansion and the December 31 close, with a break below that targeting the 38.2% level at 1831.00.

GOLD TECHNICAL ANALYSIS – Prices reversed downward as expected after putting in a Bearish Engulfing candlestick pattern. A break below the 23.6% Fibonacci expansion at 1319.01 has exposed the 38.2% level at 1273.88, with a further move below that eyeing the 50% Fib at 1237.40. Alternatively, a reversal back above 1319.01 aims for trend line support-turned-resistance is now at 1344.85.