RELATED QUOTES

SymbolPriceChange
^USDOLLAR12,029.19+10.75

THE TAKEAWAY: The S&P 500 spiked sharply lower as US fiscal cliff jitters hit fever pitch, with downside follow-through from here offering a potent driver for Dollar gains.

US DOLLAR TECHNICAL ANALYSIS Prices staged a mild recovery from neckline support established from late October (now at 9928) to retest trend line support-turned-resistance at 9958. A break above that aims for the 23.6% Fibonacci expansion at 9995. Alternatively, a drop below neckline support eyes the channel bottom at 9867.

Forex_Analysis_Can_the_Dollar_Capitalize_as_SP_500_Spikes_Lower_body_Picture_4.png, Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick below falling trend line resistance set from the September 14 high (1444.80), hinting a move lower is ahead. Negative RSI divergence reinforces the case for a downside scenario. Sellers are now testing through initial rising channel support at 1421.9l0, with a confirmed break downward on a daily closing basis exposing 1398.10. Alternatively, a reversal above the trend line aims for the channel top at 1452.00.

Forex_Analysis_Can_the_Dollar_Capitalize_as_SP_500_Spikes_Lower_body_Picture_3.png, Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices plunged through support at 1659.90, the 76.4%Fibonacci expansion. Sellers now aim to challenge the 100% mark at 1630.97, a barrier reinforced by the bottom of a falling channel carved out since mid-September. A further drop below this boundary aims for the 123.6% Fib at 1601.78. The 1659.90 level has been recast as resistance, with a reversal back above that targeting the 61.8% expansion at 1677.84.

Forex_Analysis_Can_the_Dollar_Capitalize_as_SP_500_Spikes_Lower_body_Picture_2.png, Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

Daily Chart - Created Using FXCM Marketscope 2.0

Want to learn more about RSI? Watch this Video.

CRUDE OIL TECHNICAL ANALYSIS Prices are testing the top of what may prove to be a bearish Flag chart pattern (90.37). A reversal lower from here that produces a close below pattern support (now squarely at 86.00) confirms the setup, implying a measured downside target at 81.63. Alternatively, a break above 90.37 targets falling trend line resistance at 94.04.

Forex_Analysis_Can_the_Dollar_Capitalize_as_SP_500_Spikes_Lower_body_Picture_1.png, Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

Daily Chart - Created Using FXCM Marketscope 2.0

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

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4094-0.0023-0.17%
    USDSGD=X
    1.5860+0.0035+0.22%
    EURSGD=X
    2.1690+0.0025+0.12%
    GBPSGD=X
    85.7704-0.1053-0.12%
    SGDJPY=X
    5.5005+0.0109+0.20%
    SGDHKD=X
    2.9750+0.0092+0.31%
    SGDMYR=X
    9,998.5820+50.5742+0.51%
    SGDIDR=X
    4.5205+0.004+0.09%
    SGDCNY=X
    1.0028-0.001-0.10%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,138.80+6.30+0.56%
    GCZ15.CMX
    14.62+0.03+0.23%
    SIZ15.CMX
    48.43-0.40-0.81%
    ^XAU
    2.33-0.01-0.24%
    HGZ15.CMX
    47.46-1.74-3.54%
    CLV15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.54+0.02
    ^FVX
    2.20+0.01
    ^TNX
    2.93+0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.136+0.006+4.62%
    5DN.SI
    0.74+0.02+2.78%
    5ME.SI
    0.5450.0000.00%
    N21.SI
    3.76+0.02+0.53%
    Z74.SI
    0.305-0.010-3.17%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.30+0.03+9.09%
    AWO.SI
    0.26+0.02+10.64%
    L38.SI
    0.164+0.011+7.19%
    T13.SI
    0.315+0.020+6.78%
    AWI.SI
    0.145+0.007+5.07%
    TI6.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.09-0.02-18.18%
    40R.SI
    0.325-0.035-9.72%
    AXJ.SI
    1.165-0.095-7.54%
    AYF.SI
    0.194-0.002-1.02%
    RE4.SI
    0.32-0.02-4.48%
    B49.SI