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

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.

New to forex? Sign up for our DailyFX Forex Education Series

Contact David via

Twitter at https://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3586-0.0025-0.19%
    USDSGD=X
    1.4956-0.0007-0.05%
    EURSGD=X
    1.7776-0.0099-0.55%
    GBPSGD=X
    76.7910-0.896-1.15%
    SGDJPY=X
    5.7077+0.0127+0.22%
    SGDHKD=X
    2.9928-0.0063-0.21%
    SGDMYR=X
    9,682.3887+32.7715+0.34%
    SGDIDR=X
    4.9171+0.0115+0.23%
    SGDCNY=X
    1.0223+0.0054+0.53%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,319.70+0.20+0.02%
    GCQ16.CMX
    19.70+0.05+0.27%
    SIU16.CMX
    99.89-3.85-3.71%
    ^XAU
    2.210.00-0.11%
    HGU16.CMX
    43.16+0.03+0.07%
    CLU16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.14+0.02
    ^FVX
    1.570.00
    ^TNX
    2.290.00
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.485+0.045+10.23%
    5TP.SI
    0.1680.0000.00%
    N21.SI
    1.035+0.030+2.99%
    Y92.SI
    0.79-0.01-1.25%
    G13.SI
    3.16-0.02-0.63%
    C31.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.38+0.05+15.15%
    BFU.SI
    0.29+0.03+13.73%
    S71.SI
    0.445+0.050+12.66%
    BHU.SI
    0.23-0.04-14.81%
    BQN.SI
    0.485+0.045+10.23%
    5TP.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.19-0.03-13.64%
    BDN.SI
    0.16-0.02-9.60%
    O08.SI
    0.50-0.05-9.09%
    AWZ.SI
    0.106-0.010-8.62%
    BEH.SI
    0.161-0.014-8.00%
    AWS.SI