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

RELATED QUOTES

SymbolPriceChange
^USDOLLAR11,912.17-49.76

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
    1.3331+0.0006+0.04%
    USDSGD=X
    1.4439-0.0036-0.25%
    EURSGD=X
    2.0185-0.0044-0.22%
    GBPSGD=X
    89.3888+0.1693+0.19%
    SGDJPY=X
    5.8140-0.0022-0.04%
    SGDHKD=X
    2.6766-0.0056-0.21%
    SGDMYR=X
    9,745.1201+26.5439+0.27%
    SGDIDR=X
    4.6659+0.0167+0.36%
    SGDCNY=X
    1.0414-0.0007-0.07%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,181.30+6.30+0.54%
    GCM15.CMX
    15.80+0.16+1.02%
    SIK15.CMX
    69.95-0.68-0.96%
    ^XAU
    2.76+0.02+0.55%
    HGK15.CMX
    57.04-0.11-0.19%
    CLM15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.32-0.03
    ^FVX
    1.92-0.03
    ^TNX
    2.62-0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.2250.0000.00%
    5GB.SI
    0.85+0.01+1.19%
    N21.SI
    0.290.00-1.69%
    5WA.SI
    0.42-0.01-2.33%
    E5H.SI
    0.41+0.02+5.13%
    5EN.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.184+0.031+20.26%
    W12.SI
    0.225+0.025+12.50%
    D38.SI
    0.12+0.01+11.11%
    E6R.SI
    0.26+0.02+10.64%
    D79.SI
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    TI6.SI
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    NamePriceChange% Chg
    0.113-0.046-28.93%
    5IF.SI
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    5DL.SI
    0.50-0.07-12.28%
    D11.SI
    0.144-0.018-11.11%
    T19.SI
    0.108-0.013-10.74%
    5PO.SI