State of the market: the dollar forms a reversal after the decline

On Wednesday’s trades the US dollar is showing a restrained correction against yesterday’s decline. Earlier, the American dollar was pressured by weak data on business activity in the US manufacturing sector. This renewed market concerns about a slowdown in the US economy. Risky assets and stock indices also came under the significant pressure against this background.

With negative sentiment remaining on stock exchanges, most commodity and risk currencies remain under the pressure. The US currency in the preservation of risks has moved to a correction, which is caused by technical factors and the expectation of the US employment data. The US dollar index found a support at 99.20-10, but slowed significantly the upward channel, which may indicate attempts of correction after a long growth. Resistance levels: 99.40 and 99.60, support: 99.20 and 99.00.

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Hanzenko Anton

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