State of the market: the dollar is corrected at the beginning of the week

With the opening of trading on Monday, the US dollar is trading with a restrained strengthening on the correction after Friday’s decline, which was caused by the correction of positions in the dollar before the weekend. The reason for the decline in the dollar is the optimistic sentiment associated with the US and China negotiations on trade relations, the results of which will be announced before August 22. Earlier it was reported that on August 23 new tariffs on Chinese goods amounting to $ 16 billion will come into force, and the Chinese government will deliberately respond with similar actions.

The US dollar index is trading near significant support at 96.20 remaining in the correction phase of the downward dynamics. With further movement in the correction phase, we should expect a test of resistance levels of 96.40-50. Also worth noting that the dollar remains in a downtrend.

Read also: Medium-term prospects for the US dollar for August-September

Hanzenko Anton

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