Forex Analysis: US Dollar Resilient Despite Sharp S&P 500 Advance

THE TAKEAWAY: The US Dollar managed to hold up near familiar technical levels despite a sharp rally in the S&P 500 that might have been expected to sink the haven currency.

US DOLLAR TECHNICAL ANALYSIS– Prices are testing above resistance at 10044, the 32.8%Fibonacci expansion. This barrier is reinforced by rising trend line support-turned-resistance at 10064. A break above the latter level aims for the 50% level at 10082. Initial support is at 9995, the 23.6% expansion, with a reversal below that exposing a rising trend line at 9933.

Forex_Analysis_US_Dollar_Resilient_Despite_Sharp_SP_500_Advance_body_Picture_4.png, Forex Analysis: US Dollar Resilient Despite Sharp S&P 500 Advance

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S&P 500 TECHNICAL ANALYSIS – Prices launched sharply higher in the aftermath of a deal to avert the fiscal cliff, taking out resistance at a falling trend line set from mid-September and exposing 1466.10. A break above that exposes 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 exposing the trend line at 1441.20 and former resistance at 1432.90.

Forex_Analysis_US_Dollar_Resilient_Despite_Sharp_SP_500_Advance_body_Picture_3.png, Forex Analysis: US Dollar Resilient Despite Sharp S&P 500 Advance

l Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS – Prices broke above resistance at 1680.80, the 38.2% Fibonacci retracement, exposing the 50% level at 1694.82. The 1680.80 level has been recast as near-term support, with a reversal back below that aiming for the 23.6% retracementat 1663.46.

Forex_Analysis_US_Dollar_Resilient_Despite_Sharp_SP_500_Advance_body_Picture_2.png, Forex Analysis: US Dollar Resilient Despite Sharp S&P 500 Advance

Daily Chart - Created Using FXCM Marketscope 2.0

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CRUDE OIL TECHNICAL ANALYSIS– Prices pushed aggressively higher, taking out resistance marked by a rising channel top set from early November challenge the 100% Fibonacci expansion at 93.25. A break above that aims for the 123.6% level at 94.51. Near-term support is in the 91.23-92.01 area, marked by the 61.8% and 76.4% Fibs respectively. A drop below this broadly exposes the 90.00 figure.

Forex_Analysis_US_Dollar_Resilient_Despite_Sharp_SP_500_Advance_body_Picture_1.png, Forex Analysis: US Dollar Resilient Despite Sharp S&P 500 Advance

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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