Analysis of the past day
On Wednesday, August 15, trading in the foreign exchange market remained under pressure of risks, which were replaced by a dollar purchase and safe assets. So, throughout the day, the US dollar index showed restrained growth on the inverters flight from risks. As a result, the American dollar updated the psychology of 97.00, thereby was in a significant overbought and forced investors to switch to other assets of the safe harbor, which was also caused by the negative start of trading on Wall Street and a decrease in US government bonds yields.
Stock exchanges throughout the day traded below zero, remaining under pressure of risks around the Turkish lira (Nikkei 225 -0.68, DAX -1.80, FTSE 100 -1.70, Dow 30 -1.20). The reason for escape from risk remains the crisis in Turkey, which against the backdrop of trade confrontation with the United States could worsen.
At the end of the day, the dollar index renewed the significant psychology of 97.00, which corresponds to the upper boundary of the upward channel. And, as a result, may indicate the formation of a correction for the US dollar. Support levels are: 96.80 and 96.50.
The US dollar index chart. The current price is 96.80 ( 10-year government bonds yield is a blue line)
Hanzenko Anton