State of the Market: the market departs from volatile Thursday

Trades on Friday opened with a positive dynamics of stock markets in the Asia-Pacific region, which was caused by the positive closing of trading on Wall Street. Despite the positive dynamics of the stock markets, both oil and the US currency under pressure of correction.

The correction of the American is caused by the weak data on the consumer price index in the US, which significantly reduced the likelihood of tightening monetary policy in the US in the near future. At the same time, the dollar index against the basket of major currencies is trading in a sideways trend, limited to yesterday’s low and support level of 92.60.

Technically, the American went for correction after a long period of growth, thus unloading overbought. So, the nearest support is located at around 92.40 (Fibo 23.6 from the April low). But also the optimism about the dollar is very strong and the test of resistance levels: 93.00 and 93.20 will refute the corrective movement.

Hanzenko Anton