Analysis of the past day
On Thursday, June 7, the US dollar index continued to decline against the basket of major competitors to maintain negative sentiments for the American and strengthen the euro. The market’s optimism regarding the euro broke out with new strength after statements by ECB representatives about the possibility of curtailing the QE program in the euro area.
Stock exchanges started trading Thursday very optimistically on the weakness of the US dollar, but amid lower optimism and a correction of the dollar on positive US data, by the end of the day, lost all optimism (Nikkei 225 +0.91 DAX -0.30, FTSE 100 -0, 00; Dow 30 +0.40).
As a result of trades on Thursday, the US dollar index renewed the low of June near the support level of 93.20, confirming a downward trend and retaining the potential for decline. Given the oversold of American dollar and the possible Friday correction of positions, one should expect a restrained growth in the US dollar, but this is if the American dollar doesn’t update the lows. Support levels: 93.20 and 93.00, resistance: 93.60 and 93.80.
US dollar index Graph . The current price is 93.30 (the yield of 10-year government bonds is a blue line)
Hanzenko Anton