State of the market: American dollar remains under the pressure of trade wars

At the start of the week, the US dollar index remains under pressure against the main basket of world currencies. The reason for the weakness of the American dollar remains fears of a trade war between the US and China, which put pressure on world stock indices. At the beginning of the day, at low activity, the American dollar managed to strengthen slightly against the assets of the safe harbor on recovery, and thus to adjust and retreat from the lows. At the same time, the pressure on the dollar continues to be provided by the euro and some commodity currencies.

Thus, at the beginning of the day, the NZD / USD pair appreciably strengthened against the American dollar on positive data on the trade balance, demonstrating a decrease in the trade balance deficit of New Zealand to -3 020M, which confirmed the dynamics to decline. As a result, the pair NZD / USD continues to trade in an uptrend and in the development of the figure “inverted head and shoulders”, I confine myself to the resistance level of 0.7300-10, from which it is expected to repel the general downtrend.

NZD/USD H4 Graph . The current price is 0.7280.

The US dollar index remains under the pressure of the risks of the trade war and the reduction of stock exchanges. The US dollar index is trading near the support level of 89.40, the breakthrough of which will open the way to the level of significant support 89.20.

US dollar index Graph. The current price is 89.50.

Hanzenko Anton