US Dollar Retreats to Familiar Ranges Ahead of Fed Policy Announcement

Written By McCool on Monday, December 13, 2010 | 10:28 PM

US DOLLAR INDEX Sideways trade looks set to continue after the greenback failed to overcome resistance at 80.07,the 23.6% Fibonacci retracement of the 11/4-11/30 upswing, dropping back to support at the 38.2% level (79.22). The larger trajectory continues to appear bullish, a bias established after prices broke higher out of a falling channel set from early June, but further near-term losses can’t be ruled out. A break below near-term support exposes the 50% Fib at 78.54.

US_Dollar_Retreats_to_Familiar_Ranges_Ahead_of_Fed_Policy_Announcement_body_12142010_USD.png, US Dollar Retreats to Familiar Ranges Ahead of Fed Policy Announcement
MSCI WORLD STOCK INDEX – Prices are re-testing November’s swing high at 1269.14, with negative divergence on daily relative strength studies hinting that a double top may be in the making. Confirmation of a medium term reversal requires a daily close below 1239.20, initially exposing the 38.2% Fibonacci retracement of the 8/25-11/5 upswing at 1190.80 once again.

US_Dollar_Retreats_to_Familiar_Ranges_Ahead_of_Fed_Policy_Announcement_body_12142010_STK.png, US Dollar Retreats to Familiar Ranges Ahead of Fed Policy Announcement
CRUDE OILPrices have corrected higher to retest support-turned resistance at a rising trend line set from late October having broken below it yesterday. Broadly speaking, the bias remains bearish, with a resumption of the down move initially targeting the 23.6% Fibonacci retracement of the 8/25-12/7 rally at $86.04.
US_Dollar_Retreats_to_Familiar_Ranges_Ahead_of_Fed_Policy_Announcement_body_12142010_OIL.png, US Dollar Retreats to Familiar Ranges Ahead of Fed Policy Announcement
GOLD Prices have bounced higher from support at a rising trend line set from mid-November to test resistance at $1407.28, the 23.6% Fibonacci retracement of the 11/16-12/7 rally. A break above this juncture exposes the record high at $1431.25. Near-term support lines up at $1392.46, the 38.2% Fib level.
US_Dollar_Retreats_to_Familiar_Ranges_Ahead_of_Fed_Policy_Announcement_body_12142010_GLD.png, US Dollar Retreats to Familiar Ranges Ahead of Fed Policy Announcement


0 comments:

Post a Comment