Analysis of the American Trading Session
Trades at the American session on Wednesday closed with a general decline in the US dollar against a basket of major competitors. The reason for such a rapid sale of the dollar were the alternate statements of the US Federal Reserve representatives, who stated that the current rates are at the right level and should be postponed for further increases. A similar position can be traced in the US Federal Reserve minutes, which turned out to be very dovish and aimed at restraint in rates hike in the future.
As a result, the dollar index under the closing of the American session updated a year’s low at the level of 95.10, and in the Asian session updated the psychological mark of 95.00. As a result, the dollar index turned out to be significantly oversold, which indicates an attempts of correction. Significant support is located at levels: 95.00 and 94.70.
The US dollar index chart. Current price – 95.20 (10-year government bonds yield is a blue line)
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Andre Green
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