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 MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.127-0.001-0.78%
    N21.SI
    0.305+0.005+1.67%
    5OT.SI
    0.575-0.015-2.54%
    5TP.SI
    2.83+0.01+0.35%
    C52.SI
    0.245+0.005+2.08%
    5ME.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.40+0.05+14.29%
    BFK.SI
    0.39+0.04+11.43%
    43A.SI
    0.285+0.025+9.62%
    42C.SI
    0.28+0.02+7.69%
    5CF.SI
    0.124+0.007+5.98%
    574.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.405-0.015-3.57%
    588.SI
    1.03-0.05-4.63%
    BJL.SI
    0.22-0.01-4.35%
    PA3.SI
    0.132-0.006-4.35%
    S69.SI
    0.54-0.02-3.57%
    F1E.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3520-0.0011-0.08%
    USDSGD=X
    1.5265-0.0002-0.01%
    EURSGD=X
    1.7859+0.0016+0.09%
    GBPSGD=X
    74.2750+0.03+0.04%
    SGDJPY=X
    5.7327+0.0045+0.08%
    SGDHKD=X
    2.9750+0.011+0.37%
    SGDMYR=X
    9,788.1035-30.4814-0.31%
    SGDIDR=X
    4.9284+0.0081+0.16%
    SGDCNY=X
    1.0317+0.0011+0.11%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,326.90+2.30+0.17%
    GCZ16.CMX
    18.59+0.11+0.57%
    SIU16.CMX
    96.51+1.17+1.23%
    ^XAU
    2.09+0.01+0.55%
    HGU16.CMX
    47.26-0.07-0.15%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.16+0.01
    ^FVX
    1.58+0.02
    ^TNX
    2.26+0.02
    ^TYX