Analysis of the European and American session

The US session on Wednesday closed with rapid growth against most of the main competitors. The driver to the growth of the American dollar was the weak data, that put the pressure on the competitors of the US dollar, giving the dollar support in the form of safe-haven currency. It is also worth noting the growing demand for the US currency in light of the possible geopolitical risks from the exacerbation of sanctions against Iran. As a result, this may entail an aggravation of trade relations between the United States and China.

At the trades on Wednesday, the US dollar index managed to update a high near the resistance level of 98.20, pointing out the significant overbought of the American dollar and the preservation of the upward trend. In this case, the US dollar index is limited to the phase of correction after growth. Against the background of growing optimism, this may cause the dollar index to decline to support levels: 97.90 and 97.80.

Fig. The US dollar index chart. The current price is 98.00 (10-year government bonds yield is the blue line)

Read also: “Stochastic Oscillator (Stochastic) is another useful indicator”

Andre Green

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

Topical articles of the trader’s blog:

1. Expectations from the USD/JPY for the end of April – early May
2. U.S. and E.U. Trade War
3. Gold: results and forecasts

Current Investment ideas:

1. CAT shares give SUPER-opportunity to earn in April!
2. Citigroup Inc. shows good potential for the growth. And on this we can earn! Get connected!