The main market’s drivers
From the second half of the day, the market slows down movements and it is traced the formation of flat on most major currency pairs. In addition, the market has lost main drivers on optimism related to trade negotiations and expectations about Brexit. Investors’ attention switched to the FOMC protocol, which will be published closer to the end of the day.
After the very mild rhetoric of the US Federal Reserve, the expectations from the protocol also remain very dovish. This negatively affects the American currency, but in the conditions of its oversoldness, pessimism puts little pressure on the American dollar.
The US dollar index, after attempts of correction and a decline at the start of the day is trading in the side channel, limited to the support of 96.50. The potential for dollar decline remains and will be limited to the marks: 96.30-20 and 96.10-00. Resistance is located at the levels: 96.70 and 96.90.
The US dollar index chart. The current price is 96.50 (10-year government bonds yield is the blue line)
Read also: “Three pillars of technical analysis”
Andre Green
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