Analysis of the American Trading Session

Trading on the American session on Tuesday closed with a general growth of the American dollar across the market. The reason for this movement of the American dollar was the rapid collapse of stock indices in Europe and America, which resumed demand for safe-haven currencies and in particular for the US dollar. The growth of the US state bonds yield in this case made, as a consequence, the strengthening of the US currency. The reason for such a rapid increase in risks was the aggravation of the situation in Europe, namely, the disagreement of Spain with the Brexit scenario, which was caused by the controversy of the borders. At the same time, the Bank of England supported the existing text of the Brexit agreement, which caused an increase in optimism for the pound, that was later limited to a general flight from risk.

The dollar index closed positively on rising risks and increasing demand, eventually moving to a correction, which gave a hope for the formation of a reversal, limited to the downward trading range. Resistance levels are: 96.80 and 97.00, support levels are: 96.50-60 and 96.20.

The US dollar index chart. Current price – 96.70 (10-year government bond yield – blue line)

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Andre Green

Earn with the help of the trade service on the news Erste News!

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