Analysis of the American session
The US session on Tuesday closed with a restrained decline in the US dollar against a basket of competitors, returning to the low of the day near the level of 97.00, indicating that the downward trend for the American dollar remains. The main driver for the sale of the American dollar have become expectations of rates cut in the US and the speech of US Federal Reserve Chairman Powell.
The US currency continues to maintain a downward trend, despite the decline in pessimism. Thus, global stock indices showed a noticeable increase in recovery. At the same time, the main risks of trade confrontation and the slowdown of the global economy remain.
Since the beginning of Wednesday, the US dollar index is testing support at 97.00, while maintaining the potential for decline. However, it is limited to significant oversold and support levels: 97.00 and 96.80. Resistance is located at 97.20-30.
Fig. The US dollar index chart. The current price is 97.00 ( 10-year US government bonds yield is the blue line)
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Andre Green
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