State of the market : dollar is adjusted after the decline
With the opening of trading on Wednesday, the US currency moved to a correction after a moderate decline on Tuesday. In addition to the technical correction, the American dollar was supported by the reduction of short positions before the publication of the US Federal Reserve meeting results, which will be released today at the end of the day. At the same time, the main dollar strengthening was traced against commodity currencies, which accelerated the decline at the start of the day. The driver of the decline was the negative start of stock indices in the Asia-Pacific region. The restrained positive opening of stock indices in Europe is likely to slow the recovery of the American dollar.
From the start of the day, the US dollar index has been testing key resistance 96.50, which limits further recovery of the dollar. The main limiting factor in the recovery of the dollar are market’s expectations of the Fed dovish tone, which, if confirmed, will cause a new wave of the decline of the American dollar. Support levels: 96.30-20 and 96.00, resistances: 96.50 and 96.70.
Read also: “Government bonds as a leading indicator of the foreign exchange market”
Hanzenko Anton
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