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
    1.3765+0.0064+0.47%
    USDSGD=X
    1.4886-0.0031-0.21%
    EURSGD=X
    2.0361-0.0039-0.19%
    GBPSGD=X
    87.2877+0.305+0.35%
    SGDJPY=X
    5.6340-0.0251-0.44%
    SGDHKD=X
    2.6981+0.0127+0.47%
    SGDMYR=X
    9,515.8037-25.8447-0.27%
    SGDIDR=X
    4.5108-0.0216-0.48%
    SGDCNY=X
    1.0517-0.0079-0.74%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,184.60-15.20-1.27%
    GCJ15.CMX
    16.69-0.37-2.19%
    SIK15.CMX
    66.52-1.21-1.78%
    ^XAU
    2.79+0.02+0.67%
    HGK15.CMX
    48.53-0.34-0.70%
    CLK15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.420.00
    ^FVX
    1.96+0.01
    ^TNX
    2.56+0.03
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.170.00+1.80%
    5GB.SI
    0.134+0.003+2.29%
    E13.SI
    0.2850.0000.00%
    5WA.SI
    0.144+0.003+2.13%
    5G9.SI
    0.77+0.02+3.36%
    Y92.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.18+0.02+13.92%
    M11.SI
    0.113+0.012+11.88%
    5MM.SI
    0.99+0.10+11.24%
    NC9.SI
    0.194+0.019+10.86%
    B69.SI
    0.22+0.02+10.00%
    5UF.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.089-0.021-19.09%
    5TN.SI
    0.335-0.050-12.99%
    5DS.SI
    0.112-0.015-11.81%
    5NV.SI
    0.123-0.016-11.51%
    P36.SI
    0.138-0.014-9.21%
    K2P.SI