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

RELATED QUOTES

SymbolPriceChange
^USDOLLAR11,991.59+90.73

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
    1.3770+0.0059+0.43%
    USDSGD=X
    1.4936-0.0189-1.25%
    EURSGD=X
    2.0710-0.0202-0.97%
    GBPSGD=X
    87.6698+0.069+0.08%
    SGDJPY=X
    5.6332-0.0233-0.41%
    SGDHKD=X
    2.6750+0.0111+0.42%
    SGDMYR=X
    9,497.5654-6.4727-0.07%
    SGDIDR=X
    4.5481-0.023-0.50%
    SGDCNY=X
    1.0630-0.004-0.38%
    AUDSGD=X
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    Commodities
    NamePriceChange% Chg
    1,165.40-30.80-2.57%
    GCJ15.CMX
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    SIK15.CMX
    67.60-4.93-6.80%
    ^XAU
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    HGK15.CMX
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    CLJ15.NYM
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    Bonds
    TreasuryYield (%)Yield Change
    1.70+0.12
    ^FVX
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    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    100.007-0.008-0.01%
    41H.SI
    1.055+0.050+4.98%
    N21.SI
    1.237+0.007+0.57%
    41I.SI
    0.925-0.025-2.63%
    G13.SI
    0.280.000.00%
    5WA.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.147+0.041+38.68%
    40E.SI
    0.119+0.014+13.33%
    5CH.SI
    0.194+0.019+10.86%
    5OQ.SI
    0.59+0.05+9.26%
    L5I.SI
    0.25+0.02+8.70%
    41C.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.185-0.040-17.78%
    MR8.SI
    0.26-0.05-14.75%
    T4B.SI
    0.13-0.02-12.75%
    5TW.SI
    0.12-0.02-11.11%
    P07.SI
    0.325-0.030-8.45%
    D03.SI