News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/nAoZXAZFuD
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! https://t.co/lxd5fZnn4H
  • Bitcoin ended a 10 consecutive day advance with yesterday's bearish close - breaking pace only after it overtook the 100-day moving average. That 10-day climb matches the longest bull charge with only two other examples. $BTCUSD https://t.co/G5UdX96mn9
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9t94CbyQEi
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh88nOv https://t.co/LB749nN0K4
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/7JZu61F0OW
  • Tech stocks pulled back from record territory after Amazon posted tepid Q3 guidance. Get your weekly equities forecast from @margaretyjy here: https://t.co/kpYlD2ryue https://t.co/pXDztqY8PQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/LQS1xMPSVc
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/WmRkOUGwlq
  • Recent price action in the US Dollar Index (DXY) casts a bearish outlook for the Greenback as it extends the series of lower highs and lows from earlier this week. Get your weekly USD technical forecast from @DavidJSong here: https://t.co/aQVzoACWEp https://t.co/TBFiTrur0P
Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

Ilya Spivak, Head Strategist, APAC

THE TAKEAWAY: The S&P 500 spiked sharply lower as US fiscal cliff jitters hit fever pitch, with downside follow-through from here offering a potent driver for Dollar gains.

US DOLLAR TECHNICAL ANALYSIS Prices staged a mild recovery from neckline support established from late October (now at 9928) to retest trend line support-turned-resistance at 9958. A break above that aims for the 23.6% Fibonacci expansion at 9995. Alternatively, a drop below neckline support eyes the channel bottom at 9867.

Forex_Analysis_Can_the_Dollar_Capitalize_as_SP_500_Spikes_Lower_body_Picture_4.png, Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

Daily Chart - Created Using FXCM Marketscope 2.0

S&P 500 TECHNICAL ANALYSIS – Prices put in a bearish Dark Cloud Cover candlestick below falling trend line resistance set from the September 14 high (1444.80), hinting a move lower is ahead. Negative RSI divergence reinforces the case for a downside scenario. Sellers are now testing through initial rising channel support at 1421.9l0, with a confirmed break downward on a daily closing basis exposing 1398.10. Alternatively, a reversal above the trend line aims for the channel top at 1452.00.

Forex_Analysis_Can_the_Dollar_Capitalize_as_SP_500_Spikes_Lower_body_Picture_3.png, Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Prices plunged through support at 1659.90, the 76.4%Fibonacci expansion. Sellers now aim to challenge the 100% mark at 1630.97, a barrier reinforced by the bottom of a falling channel carved out since mid-September. A further drop below this boundary aims for the 123.6% Fib at 1601.78. The 1659.90 level has been recast as resistance, with a reversal back above that targeting the 61.8% expansion at 1677.84.

Forex_Analysis_Can_the_Dollar_Capitalize_as_SP_500_Spikes_Lower_body_Picture_2.png, Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

Daily Chart - Created Using FXCM Marketscope 2.0

Want to learn more about RSI? Watch this Video.

CRUDE OIL TECHNICAL ANALYSIS Prices are testing the top of what may prove to be a bearish Flag chart pattern (90.37). A reversal lower from here that produces a close below pattern support (now squarely at 86.00) confirms the setup, implying a measured downside target at 81.63. Alternatively, a break above 90.37 targets falling trend line resistance at 94.04.

Forex_Analysis_Can_the_Dollar_Capitalize_as_SP_500_Spikes_Lower_body_Picture_1.png, Forex Analysis: Can the Dollar Capitalize as S&P 500 Spikes Lower?

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

To be added to Ilya's e-mail distribution list, please CLICK HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES