The main market’s drivers

After it became clear that according to the results of the mid-term elections in the United States, the majority in the House of Representatives was Democrats, the US currency accelerated the decline across the market, having received an incentive for a decline in the positive opening of trading of European stock indices, which increased the dollar against commodity currencies and raw materials. But on the other hand, it is worth noting that the further decline in the dollar remains limited, despite the lack of official mid-term election results, due to the fact that the Republicans are likely to retain a majority in the US Senate, and tomorrow’s Fed report will confirm another rate increase this year

The US dollar index found support at the level of 95.70-50, which meets the lower boundary of the downward channel and confirms the oversoldness of the American dollar. The potential to reduce the dollar remains, but will be limited to support, as well as the possibility of correction, resistance levels: 96.00 and 96.20

The US dollar index chart. The current price is 95.80 (10-year government bonds yield is the blue line)

Read also: “The main factors of  influence on the currency, stock, crypto-currency market. Choose the best tool for trading.”

Andre Green

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