Analysis of the past day

On Thursday, the market saw a significant increase in activity caused by the sale of US currency across the market. The reason for the  American dollar decline was the general growth of optimism in the European session completely negated all concerns about the US trade confrontation.

Stock indexes in Europe and America traded above zero, acting as a driver for increased optimism in the market (Nikkei 225 +0.00, DAX + 0.90 FTSE 100 +0.40, Dow 30 + 0.80). An additional factor in reducing the US dollar was the inability of 10-year-old US state bonds continue to rise higher.

As a result, the US dollar index has updated at least at the level of 93.80, thereby breaking the level of 94.00 and testing the lower border of the downward channel, which caused a significant oversold of the US dollar against the basket of major competitors. The oversold and positive data on the US served as a reason for the correction, that will be limited to resistance levels: 94.30 and 94.50.

The US dollar index chart. The current price is 94.00 (10-year government bonds yield is a blue line)

Hanzenko Anton