State of the market: the American dollar is correcting

After the low active trading on Monday, the American currency managed to update the November’s high against the basket of major competitors. The reason for it was the preservation of positive sentiment on the US dollar, the growth of negative sentiment on the stock markets and low activity. Trading on Tuesday opened with a change in sentiment on the stock markets and the dollar correction for overbought. As a result, the US dollar was under pressure, while the Japanese yen was under more significant pressure as an asset of a safe haven on the growth of optimism.

From the start of the day, the US dollar index has been trading lower, remaining under the pressure of a correction on the repulse from the level of 97.70, which eventually slowed down the three-day uptrend, which, in turn, was limited to the monthly upward trend. In the face of growing optimism and the formation of a deeper correction, the dollar should be expected to test support levels: 97.20-30 and 97.00. Resistance marks are: 97.70 and 98.00.

Read also: “Norwegian Krone. Features of trading Scandinavian currencies “

Hanzenko Anton

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