After Donald Trump's comments that he did not agree with the fast-rising interest rate USD, a sound slap on the part of the investors. And, at the moment, traders are still reassessing the Fed's monetary policy, and if we judge the market behavior, vendors definitely take precedence. If until a few days ago investors were on track to accumulate interest rises by another 150 bps by 2020, they currently only accumulate 75, leading to a USD decline.
The Technical Dollar Index is at a key level of resistance that failed to fall over the past two months. After forming a double peak, the short-lived ascending channel was drilled, then successfully tested in the previous two weeks. Price Action, which the price registers today, is indicative of moods among traders, and we can conclude that the resistance zone remains significant with a high probability of a turnaround to a downward trend. In addition, the Fibonacci 50% correction of the main downward trend, as well as DeMarker, is pointing downwards from a surplus zone. I expect the depreciation of the greenback to remain the same next week. Comments from the Fed or Trump on the issue of monetary policy will lead to high volatility and sharp movements in the dollar.
Chart: Used with permission of Bloomberg Finance L.P.
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