Forex Analysis: US Dollar Breaks with S&P 500 on Fed Policy Outlook

RELATED QUOTES

SymbolPriceChange
^USDOLLAR11,966.36+7.35

THE TAKEAWAY: The US Dollar pushed sharply higher despite a lack of support from risk appetite trends after the Fed signaled it may end QE faster than expected.

US DOLLAR TECHNICAL ANALYSIS Prices took out resistance at 10082, the 50% Fibonacci expansion. The bulls now target the 61.8% level at 10122, with a break above that that eyeing the 76.4% Fib at 10170. The 10082 level has been recast as near-term support. A reversal back below that exposes the 32.8%expansion at 10044.

Forex_Analysis_US_Dollar_Breaks_with_SP_500_on_Fed_Policy_Outlook_body_Picture_4.png, Forex Analysis: US Dollar Breaks with S&P 500 on Fed Policy Outlook

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices launched sharply higher in the aftermath of a deal to avert the fiscal cliff, taking out a falling trend line set from mid-September and exposing resistance at 1466.10. A break above that targets the 1471.60-1474.90 area marked by the October 5 and September 14 swing highs. Initial support is at 1450.10, the December 19 top, with a break below that eyeing the trend line at 1440.70 and a horizontal pivot at 1432.90.

Forex_Analysis_US_Dollar_Breaks_with_SP_500_on_Fed_Policy_Outlook_body_Picture_3.png, Forex Analysis: US Dollar Breaks with S&P 500 on Fed Policy Outlook

l Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices reversed sharply lower from resistance at a falling trend line set from late November, with sellers now probing below support at the 38.2% Fibonacci expansion (1649.37). A break of this boundary exposes the 50% level at 1635.24. Near-term resistance is at 1666.86, the 23.6% Fib.

Forex_Analysis_US_Dollar_Breaks_with_SP_500_on_Fed_Policy_Outlook_body_Picture_2.png, Forex Analysis: US Dollar Breaks with S&P 500 on Fed Policy Outlook

Daily Chart - Created Using FXCM Marketscope 2.0

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CRUDE OIL TECHNICAL ANALYSIS Prices are pulling back from resistance at 93.25, the 100% Fibonacci expansion. Near-term support is in the 91.23-92.01 area, marked by the 61.8% and 76.4% Fibs respectively. This barrier is reinforced by the formerly broken top of a rising channel top set from early November.A drop below 91.23 exposes the 90.00 figure. Alternatively, a reversal above 93.25 aims for the 123.6% expansion at 94.51.

Forex_Analysis_US_Dollar_Breaks_with_SP_500_on_Fed_Policy_Outlook_body_Picture_1.png, Forex Analysis: US Dollar Breaks with S&P 500 on Fed Policy Outlook

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
    1.3521+0.001+0.08%
    USDSGD=X
    1.4722-0.0005-0.04%
    EURSGD=X
    2.0661-0.0081-0.39%
    GBPSGD=X
    91.9143+0.3373+0.37%
    SGDJPY=X
    5.7344-0.0079-0.14%
    SGDHKD=X
    2.6981+0.0013+0.05%
    SGDMYR=X
    9,762.7725+10.7158+0.11%
    SGDIDR=X
    4.5862-0.0032-0.07%
    SGDCNY=X
    1.0323-0.0121-1.16%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,187.00+0.50+0.04%
    GCQ15.CMX
    16.66+0.01+0.05%
    SIN15.CMX
    68.76+0.07+0.10%
    ^XAU
    2.78+0.01+0.31%
    HGN15.CMX
    57.45-0.06-0.10%
    CLN15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.53+0.01
    ^FVX
    2.130.00
    ^TNX
    2.88-0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.195+0.020+11.43%
    F13.SI
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    E5H.SI
    0.335-0.005-1.47%
    AFC.SI
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    5WA.SI
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    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.18+0.03+20.00%
    P36.SI
    0.155+0.021+15.67%
    5F4.SI
    0.128+0.014+12.28%
    510.SI
    0.195+0.020+11.43%
    F13.SI
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    T18.SI
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    AYE.SI
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    5MQ.SI
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    AYL.SI
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    O2I.SI
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    AYC.SI