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

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.39790.000.00%
    USDSGD=X
    1.5735+0.00010.00%
    EURSGD=X
    2.02780.000.00%
    GBPSGD=X
    80.99290.000.00%
    SGDJPY=X
    5.57330.000.00%
    SGDHKD=X
    2.96880.000.00%
    SGDMYR=X
    9,639.46000.000.00%
    SGDIDR=X
    4.67320.000.00%
    SGDCNY=X
    0.99330.000.00%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,238.50-9.30-0.75%
    GCJ16.CMX
    15.790.00-0.03%
    SIH16.CMX
    60.64+1.88+3.21%
    ^XAU
    2.03+0.03+1.35%
    HGH16.CMX
    29.08+2.87+10.95%
    CLH16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.20+0.09
    ^FVX
    1.75+0.10
    ^TNX
    2.61+0.10
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.3050.0000.00%
    N21.SI
    1.595-0.015-0.93%
    MC0.SI
    3.58+0.04+1.13%
    Z74.SI
    0.360.000.00%
    E5H.SI
    2.82-0.03-1.05%
    C31.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.151+0.021+16.15%
    5PL.SI
    0.184+0.023+14.29%
    42T.SI
    62.06+7.42+13.58%
    NF6.SI
    0.32+0.03+12.28%
    I06.SI
    0.147+0.014+10.53%
    5WJ.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.084-0.060-41.67%
    5PI.SI
    0.225-0.055-19.64%
    5SY.SI
    0.205-0.045-18.00%
    BER.SI
    0.57-0.10-14.93%
    BLA.SI
    0.101-0.017-14.41%
    AZZ.SI