State of the market: the American is returning to a downtrend

Despite very weak data on inflation in the UK and the euro area, the US dollar has not been able to overcome the downward trend channel. As a result, the dollar index remains below the resistance levels: 89.70 and 89.50. In the end, this indicates a continued downward trend and in the long term a more significant weakening of the American.

The main factor of the American decline is geopolitical risks and negative dynamics of US stock exchanges. Therefore, the dynamics of the dollar remains dependent more on policy than on statistical data.

Graph of the US dollar index. The current price is 89.50.

Hanzenko Anton