Analysis of the American Trading Session

The US session closed with a rising dollar index against a basket of major competitors on Tuesday. At the same time, the index updated a two months maximum at the level of 95.70, which confirmed keeping the upward trend. In the context of the correction and reduction of risks on the  Italian budget, the single currency moved to correction, thereby causing a decrease of the American dollar against European currencies.

Plans on reducing the budget deficit in Italy to 2% by 2021 have accelerated the correction of the dollar against the basket of competitors, calling into question keeping the upward trend in the dollar. Key support for the dollar index are the levels: 95.30 and 95.00. The latter is a significant psychology, breaking of it would cast doubt on keeping the upward dynamics of the American dollar.

The US dollar index chart. The current price is 95.30 (10-year government bonds yield is the blue line)

Read also: “Some features of the Fibonacci grid”

Andre Green

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