Analysis of the past day

On Wednesday at the end of the trading day, the US dollar strengthened against a basket of major competitors. The main strengthening of the American dollar traced against the euro. The single currency was under the pressure while waiting for the ECB meeting, which is expected to stimulate the eurozone economy. The strengthening of the US dollar was also seen against commodity currencies, which were under pressure after growth.

Stock indices were traded with strengthening mostly. On the evidence that China is helping to mitigate the effects of a trade war. (Nikkei 225 +0.96; DAX +0.70; FTSE 100 +0.90; Dow 30 +0.30)

Based on the trading results, the US dollar index came out of the four-day side channel and formed an upward correctional trend. It opens the way to resistance levels: 98.80 and 99.00, but is limited by overbought and support levels: 98.50 and 98.40.

Fig. US dollar index chart. Current price – 98.70 (10-year US government bonds yield – blue line)

Hanzenko Anton