Analysis of the past day

On Tuesday, February 6, the US currency continued to grow on a general decline in stock indices. The strengthening of the American was caused by the increase in the profitability of the state bonds, which after the reduction resumed growth. Also, the American got support against the backdrop of the continued negative sentiment in the market and the flight of investors from risks.

Stock indices throughout the day continued to decline in all trading sessions, remaining under pressure of the bubble in the stock market (Nikkei 225 -4.70, DAX -1.90, FTSE 100 -1.80, Dow 30 -0.20). The ambiguous start of the US stock indices slightly slowed the negative sentiment of the market, which was caused by attempts to increase the US indices. The general sentiment of the stock market is restrainedly negative, which is also due to the oversold.

Based on the flights from risks, the US dollar managed to develop an upward trend, which, in conditions of negative market sentiment, is likely to persist. At the same time, the US dollar index began the development of the “double bottom” figure, which indicates further growth to the resistance levels: 90.00 and 90.20.

Graph of the US dollar index. The current price is 89.70.

Hanzenko Anton