Analysis of the American Trading Session

Friday’s trading last week closed with American dollar decrease to the opening day level, after a short increase. Despite the growth of the American dollar throughout the market, the day was closed at the opening level, and the week in a noticeable minus. The reason for such an ambiguous dynamics of the US dollar and the market as a whole was the G7 summit and the uncertainty that it caused. As a result, investors preferred to adjust their positions before the weekend, which was traced during the trading of European and American sessions on Friday.

The G7 summit, which ended on the weekend, didn’t give the market a clear answer to the trade confrontation of the US, thereby renewing concerns about the US trade confrontation and the scandalous results of the G7 summit. Under Trump’s political press came Prime Minister of Canada Trudeau, whom Trump accused of betraying and lying, which became a new round of trade confrontation with the United States and had a negative impact on the Canadian currency.

Stock indices in the Asia-Pacific region are traded in different directions with the resumption of trading volatility. And the US dollar index is trading in a narrow trading range, limited to levels of support and resistance at 93.40-60. Despite the uncertainty after the G7 meeting, the market expects a very volatile week thanks to the upcoming news.

The US dollar index remains under pressure at the beginning of the week, keeping the downside potential on maintaining the downward trend and the risks associated with the American. Significant zone support for the dollar remains the mark: 93.40 and 93.20, breaking through which will indicate a further decline in the dollar and acceleration of the downward dynamics.

Andre Green