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
    1.2519-0.0004-0.03%
    USDSGD=X
    1.7307+0.0005+0.03%
    EURSGD=X
    2.1049+0.0008+0.04%
    GBPSGD=X
    81.8962+0.1139+0.14%
    SGDJPY=X
    6.1933+0.0013+0.02%
    SGDHKD=X
    2.5936+0.008+0.31%
    SGDMYR=X
    9,136.9463+18.084+0.20%
    SGDIDR=X
    4.9754+0.0049+0.10%
    SGDCNY=X
    1.1683-0.0005-0.04%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,287.10-6.80-0.53%
    GCM14.CMX
    19.32-0.28-1.43%
    SIK14.CMX
    90.18-0.65-0.72%
    ^XAU
    3.040.00-0.08%
    HGK14.CMX
    103.22-0.15-0.15%
    CLM14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.73+0.08
    ^FVX
    2.72+0.08
    ^TNX
    3.52+0.06
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.114-0.001-0.87%
    B22.SI
    0.610.0000.00%
    E5H.SI
    2.20+0.010+0.46%
    JS8.SI
    0.128+0.003+2.40%
    545.SI
    0.143+0.004+2.88%
    5GB.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.345+0.045+15.00%
    5DS.SI
    0.245+0.030+13.95%
    5UE.SI
    0.18+0.020+12.50%
    T16.SI
    0.195+0.016+8.94%
    CZ4.SI
    0.745+0.050+7.19%
    L02.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.123-0.013-9.56%
    5FI.SI
    0.158-0.012-7.06%
    5PF.SI
    0.13-0.009-6.47%
    A59.SI
    0.22-0.015-6.38%
    E94.SI
    0.56-0.030-5.08%
    G08.SI