State of the market: the American broke the downtrend

Trading on Thursday closed with a significant strengthening of the US dollar across the entire spectrum of the market. The main growth of the American fell at the American session, which is associated with the growth of the yield of state bonds and a reduction in political risks in the United States. As a result, the US dollar index managed to exit the two-week downtrend and return to the level of 90.00. Also in the market there is a decrease in demand for the Japanese yen, which is caused by the persistence of weak inflation data in Japan and relative calm on the trade confrontation, which, in turn, causes an increase in optimism.

Given the rapid correction of the American and its significant overbought, from the level of 90.00 one should expect correction to the support levels: 89.80 and 89.60. But the formation of the flat, which will relieve the overbought of the US dollar, is possible.

Graph of the US dollar index. The current price is 89.90.

Hanzenko Anton