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
    1.4106+0.0013+0.09%
    USDSGD=X
    1.5831+0.0083+0.53%
    EURSGD=X
    2.1753+0.0042+0.19%
    GBPSGD=X
    85.9157-0.3648-0.42%
    SGDJPY=X
    5.4926-0.0067-0.12%
    SGDHKD=X
    2.9568-0.0036-0.12%
    SGDMYR=X
    9,956.4570-55.9932-0.56%
    SGDIDR=X
    4.5143-0.0198-0.44%
    SGDCNY=X
    1.0069-0.0022-0.22%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,131.60+9.00+0.80%
    GCZ15.CMX
    14.51+0.07+0.47%
    SIZ15.CMX
    48.82+1.99+4.24%
    ^XAU
    2.330.00+0.09%
    HGZ15.CMX
    44.87+2.31+5.43%
    CLV15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.52+0.04
    ^FVX
    2.19+0.02
    ^TNX
    2.91+0.01
    ^TYX

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