Analysis of the past day

On Monday, March 18, the US dollar index appreciably weakened against the basket of major competitors, which was caused by a number of  European news and technical correction, thus coming very close to Friday’s low and completely corrected against Friday. At the same time, optimism about the upcoming meeting of the US Federal Reserve continues to be maintained, as a support for the US dollar.

Stock markets, despite the risk reduction, began the week with a decrease because investors were leaving to more profitable currencies (Nikkei 225 -0.90, DAX -1.60, FTSE 100 -1.60, Dow 30 -1.10). In this case, the negative movement of the background areas doesn’t have a significant basis, which may indicate an early correction.

In conditions of maintaining the downward dynamics, the US dollar index is significantly oversold, which will limit further decline. At the same time, the main support is located at the level of 90.00-89.90, from which it is possible to repulse. More significant support is located at the level of 89.80-70.

US dollar index Graph. The current price is 89.90.

Hanzenko Anton