FRX: US Dollar Poised to Rise as Stocks, Commodities Decline After FOMC
US DOLLAR INDEX – Prices have put in a bullish Dragonfly Doji above support at 79.22, the 38.2% Fibonacci retracement of the 11/4-11/30 upswing. Renewed upward momentum from here sees initial resistance at 80.07,the 23.6% Fib, with a break above that exposing November’s swing high at 81.44.
MSCI WORLD STOCK INDEX – Prices are showing a bearish Shooting Star candlestick below resistance at November’s swing high, hinting that a turn lower is ahead. Initial support lines up at the 76.4% Fibonacci retracement of the 11/5-11/30 downswing.
GOLD – Prices are showing a bearish Shooting Star candlestick pattern below resistance at 1407.28, the 23.6% Fibonacci retracement of the 11/16-12/7 rally. Confirmation of a downward reversal requires a break below from support at a rising trend line set from mid-November (now at $1386.27).
