State of the market: American dollar is recovering after decline
At Tuesday’s trading, the US dollar traded with a strengthening against most competitors, which was caused by a decrease in demand for safe harbor currencies after optimistic signals from stock indices and a technical correction of the dollar after decline, as a result of which the American dollar is trading in the correction phase.
Also at the beginning of the day, the American dollar was supported by mixed data on inflation in China, which reduced optimism on the market, but contributed to the growth of the US dollar. In addition to the safe harbor currencies, European currencies remain under pressure, which is exerted by the correction of the dollar. In this case, further decline for the euro and the pound is limited by rising dynamics, despite the worsening political risks in the UK.
The US dollar index came from a downtrend on a change on market sentiment, but is still limited by a downward trend. So, the significant resistance is the level of 94.20 and 94.40. Strong support is located at the levels: 94.00 and 93.80.
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Anton Hanzenko