State of the market: the American continues to grow, despite the correction of the state bonds

The US dollar index continued to rise, despite a significant overbought and repulsion from 10-year US state bonds from the level of 3,000. At the moment, the American remains near the highs of March and is limited to psychology 91.00.

The growth of the US dollar is caused by the negative attitude towards the euro, which is caused by rumors of a delay in the beginning of the curtailing of the QE stimulus program in the euro area. Also, the American receives support from the reduction in the cost of raw materials and the sale of commodity currencies.

The correction of the state bonds from level 3.000 may be the first call to a full-scale correction of the American if this level is not overcome. Technically, the US dollar index is limited to the level of 91.00 and a significant overbought. What can only exacerbate the correction of the US dollar in the future.

Graph of the US dollar index. The current price is 90.80 (the yield of 10-year government bonds is a blue line).

Hanzenko Anton