Forex Analysis: Will US Dollar Continue Post-Presidential Election Rally?

The US Dollar (ticker: USDOLLAR) has rallied as the Dow Jones Industrial Average has fallen sharply following the re-election of the US President. Can this Dollar rally and Dow sell-off last?

Prosthat favor a US Dollar rally and Dow Jones sell-off:

Investors sell risky assets as they brace for Fiscal Cliff difficulties in Q4

Growth fears in Europe could keep pressure on Euro/US Dollar, European equities

We can’t ignore risks that this could be the start of a long-awaited EURUSD correction, however, and we see two key reasons for which this could be the start of a larger US Dollar bounce.

Consagainst continued US Dollar strength and selling EURUSD weakness:

USDOLLAR failure at key resistance could put Dollar rally at risk

The Euro/US Dollar trades near critical support and could bounce

Dow Jones FXCM Dollar Index Nears Critical 10000 Mark as Dow Jones Industrials Tumble

forex_analysis_us_dollar_rally_president_body_Picture_1.png, Forex Analysis: Will US Dollar Continue Post-Presidential Election Rally?

Source: FXCM Trading Station Desktop

It will be critical to watch the USDOLLAR’s next moves as markets react to clear uncertainty following the US Presidential elections.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3799-0.0017-0.12%
    USDSGD=X
    1.5382-0.0004-0.03%
    EURSGD=X
    2.0291+0.0084+0.41%
    GBPSGD=X
    80.6598+0.2169+0.27%
    SGDJPY=X
    5.6294+0.0058+0.10%
    SGDHKD=X
    2.9864+0.0091+0.31%
    SGDMYR=X
    9,865.5488-1.6348-0.02%
    SGDIDR=X
    4.7704+0.0072+0.15%
    SGDCNY=X
    0.9994+0.007+0.70%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,214.90-7.80-0.64%
    GCQ16.CMX
    16.15-0.19-1.18%
    SIN16.CMX
    79.41-2.71-3.31%
    ^XAU
    2.11+0.01+0.29%
    HGN16.CMX
    49.55+0.07+0.14%
    CLN16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.39+0.04
    ^FVX
    1.85+0.03
    ^TNX
    2.65+0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.295+0.015+5.36%
    N21.SI
    1.02+0.01+0.99%
    C22.SI
    0.765+0.005+0.66%
    G13.SI
    3.95+0.05+1.28%
    Z74.SI
    0.385+0.005+1.32%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.35+0.03+7.69%
    588.SI
    0.29+0.02+7.41%
    40T.SI
    0.22+0.02+7.32%
    S71.SI
    0.295+0.015+5.36%
    N21.SI
    0.196+0.011+5.95%
    AYL.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.375-0.055-12.79%
    BTJ.SI
    0.55-0.06-9.84%
    BHD.SI
    0.285-0.035-10.94%
    S19.SI
    0.36-0.02-6.49%
    AWE.SI
    0.24-0.02-5.88%
    BRR.SI