State of the market: negative sentiments return to the market

Stock indices and the US dollar strengthened significantly after the rapid growth on Monday of the decrease in the tension of the US – China trade war. So, they were in noticeable overbought after a long decline. At the opening of trading on Tuesday, a correction after growth is observed on the market. Such a movement was caused by rumors that the US is considering the possibility of introducing tariffs against the EU. As a result, it may shift the front of the trade war from China to Europe. Against the background of negative expectations in the market, pessimism has sharply increased.

From the start of the day, the US dollar index has been trading near the opening level of 96.90-80, thereby maintaining an upward trend, being in the overbought zone. Under current conditions, the possibility of technical correction after growth is not excluded. Support levels are located at the levels: 96.70 and 96.50, fixing above which will maintain the upward trend in the American dollar. Resistance is located at levels: 97.00 and 97.20.

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Hanzenko Anton

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