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
    1.3499-0.0003-0.02%
    USDSGD=X
    1.46830.000.00%
    EURSGD=X
    2.0778+0.0007+0.03%
    GBPSGD=X
    91.2317+0.0786+0.09%
    SGDJPY=X
    5.7431+0.0018+0.03%
    SGDHKD=X
    2.6954+0.0002+0.01%
    SGDMYR=X
    9,793.5078-6.5303-0.07%
    SGDIDR=X
    4.5941-0.0005-0.01%
    SGDCNY=X
    1.0447+0.0002+0.01%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,187.40+0.50+0.04%
    GCM15.CMX
    16.77+0.02+0.14%
    SIN15.CMX
    68.69-2.56-3.59%
    ^XAU
    2.780.00+0.13%
    HGN15.CMX
    58.34+0.31+0.53%
    CLN15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.52-0.04
    ^FVX
    2.14-0.08
    ^TNX
    2.89-0.09
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.695-0.005-0.71%
    Q1P.SI
    0.815-0.010-1.21%
    N21.SI
    0.920.000.00%
    G13.SI
    4.17-0.07-1.65%
    Z74.SI
    1.470.00+0.34%
    BS6.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.200.000.00%
    K22.SI
    1.12+0.09+8.21%
    S85.SI
    0.230.000.00%
    T35.SI
    0.26+0.01+4.00%
    O08.SI
    1.5750.0000.00%
    AIY.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.305-0.075-19.74%
    5NF.SI
    1.51-0.27-15.17%
    AYB.SI
    0.420.000.00%
    ADP.SI
    0.57-0.01-1.72%
    AXB.SI
    0.25-0.01-5.66%
    H64.SI