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

RELATED QUOTES

SymbolPriceChange
^USDOLLAR12,106.41+41.51

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

Want to learn more about RSI? Watch this Video.

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
    1.3600+0.0024+0.18%
    USDSGD=X
    1.4949+0.0059+0.40%
    EURSGD=X
    1.7884+0.0121+0.68%
    GBPSGD=X
    78.1000+0.173+0.22%
    SGDJPY=X
    5.7020-0.0057-0.10%
    SGDHKD=X
    2.9902+0.0005+0.02%
    SGDMYR=X
    9,658.8740-25.3096-0.26%
    SGDIDR=X
    4.9089-0.0134-0.27%
    SGDCNY=X
    1.0183+0.006+0.59%
    AUDSGD=X
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    Commodities
    NamePriceChange% Chg
    1,316.10-7.30-0.55%
    GCQ16.CMX
    19.51-0.17-0.88%
    SIU16.CMX
    103.74-0.30-0.29%
    ^XAU
    2.240.00+0.13%
    HGU16.CMX
    43.95-0.24-0.54%
    CLU16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.12+0.02
    ^FVX
    1.570.00
    ^TNX
    2.29-0.01
    ^TYX

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  • Most Actives
    Most Actives
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    5ME.SI
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    N21.SI
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    43E.SI
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    C31.SI
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    Z74.SI
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    BFT.SI
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    BTF.SI
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    BDF.SI
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    5G1.SI
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    5ME.SI