Thursday, March 21, 2013

US Dollar Drifts Higher with S&P 500 After Fed Rate Decision




THE TAKEAWAY: The US Dollar continued a cautious recovery, advancing alongside the S&P 500 following the Federal Reserve monetary policy announcement.



US DOLLAR TECHNICAL ANALYSIS Prices are edging higher after putting in a bullish Three Inside Up candlestick pattern above support at 10454, the 14.6% Fibonacci retracement. Rising channel support-turned-resistance is at 10565, with a push back above that targeting the March 11 high at 10576. Alternatively, a reversal below support exposes the 23.6% Fib at 10379.


Forex_US_Dollar_Drifts_Higher_Alongside_SP_500_Fed_Rate_Decision_body_Picture_5.png, US Dollar Drifts Higher with S&P 500 After Fed Rate Decision


Daily Chart – Created Using FXCM Marketscope 2.0



S&P 500 TECHNICAL ANALYSIS – Prices are inching lower after putting in a bearish Harami candlestick pattern. Initial support is at 1531.50, the 14.6% Fibonacci retracement, with a break below that exposing the 23.6% level at 1511.60. Near-term resistance is at 1563.90, the March 15 high. A reversal above that targets the index’s record high at 1576.10.


Forex_US_Dollar_Drifts_Higher_Alongside_SP_500_Fed_Rate_Decision_body_Picture_6.png, US Dollar Drifts Higher with S&P 500 After Fed Rate Decision


Daily Chart – Created Using FXCM Marketscope 2.0



GOLD TECHNICAL ANALYSIS Prices broke above resistance at 1604.87, the 38.2% Fibonacci retracement, will buyers eyeing the 50% level at 1620.28. A further push above that aims for the 61.8% Fib at 1635.68. The 1604.87 mark has been recast support, with a turn back beneath that eyeing the 23.6% retracement at 1585.81.


Forex_US_Dollar_Drifts_Higher_Alongside_SP_500_Fed_Rate_Decision_body_Picture_7.png, US Dollar Drifts Higher with S&P 500 After Fed Rate Decision


Daily Chart – Created Using FXCM Marketscope 2.0



CRUDE OIL TECHNICAL ANALYSIS Prices are bouncing from support at the 92.00 figure, marked by the 23.6% Fibonacci expansion. Near-term resistance is at 93.77, the 50% Fib retracement. A break above that targets the 61.8% level at 94.82. Alternatively, a break below support exposes the 38.2% level at 90.73.


Forex_US_Dollar_Drifts_Higher_Alongside_SP_500_Fed_Rate_Decision_body_Picture_8.png, US Dollar Drifts Higher with S&P 500 After Fed Rate Decision



Daily Chart – Created Using FXCM Marketscope 2.0



Written by Ilya Spivak, Currency Strategist for Dailyfx.com



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US Dollar Drifts Higher with S&P 500 After Fed Rate Decision

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