State of the market : with the opening of the new trading week, a movement against Friday is forming

With the opening of the new trading week, a movement against the Friday is forming, a movement towards the recovery of the US dollar against the Friday collapse, which was caused by weak employment data in the USA. The data, in turn, increased the sale of the American dollar by increasing the likelihood of lowering the US Federal Reserve rates. In addition to technical correction and oversold, the reason for the recovery of the US dollar at the start of the week was a number of equally important factors: an increase in optimism in the background areas, indicating a weakening of the risks of trade confrontation; and information that the US tariffs for Mexican goods are postponed indefinitely. This actually strengthened the general market sentiment on reducing the risks of a trade war.

From the start of the week the US dollar index is being traded with a strengthening on correction against Friday. It continues to be limited to the resistance level of 96.90-97.00, which correspond to the upper boundary of the downward channel. The level of support is located at the levels: 96.90 and 96.50.

Read also: “Stock indices of America: Canada, Mexico and Brazil”

Hanzenko Anton

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