Analysis of the American Trading Session
The US session on Tuesday closed with a noticeable rise for the US dollar against the basket of major competitors. The reason for the strengthening of the American dollar was the optimistic mood regarding the American dollar and the evidence that US Federal Reserve Chairman Powell will hold a press conference after each meeting of the Fed, which in turn significantly increased expectations about the upcoming Fed meeting, and gave hints of the possibility of a more hawkish tone CB.
At trading on Wednesday, the US dollar is traded with a strengthening against the assets of the safe harbor, receiving support from the meeting of the heads of the United States and North Korea. At the same time, the American dollar remains very restrained against the remaining currencies, trading in flat on expectation of correction after growth.
The US dollar index at Tuesday’s trading managed to overcome a significant resistance of 93.80, which may indicate a way out of the downward trend. But in the face of increasing volatility before the meeting, the US Federal Reserve can change everything. As the market will expect final results on interest rates and the number of their increase in the current year.
- Support levels for the US dollar index: 93.80, 93.60 and 93.40, resistance: 94.00, 94.20 and 94.40.
Read also: “Fundamental analysis: interest rate and its impact on the exchange rate”
Andre Green