The US dollar index continues to lose ground in the context of the overall recovery in US stock indices. One of the drivers of growth, in addition to this stimulus package, is that Donald Trump signed a resolution to extend government funding until December 11,
Estiving further weakening of the USDX to 93.40 and then to
Writing the pair tested for strength, the technical resistance level was 1.1750. The breakthrough and subsequent fixation of the pair above the clear level will allow to expect a further increase to 1.1800 and further to 1.1850/70. This scenario remains the main one, as sellers were unable to establish a technical and psychological support level of 1.1700. Further growth can only occur if the USD weakens further, which in turn depends on the ability of the US stock market to continue moving upwards.
Slat0 has returned to market buyers, whose closest target remains psychological and at the same time the technical resistance level is 1.3000. The probability of breaking the recorded resistance at the first attempt is not high, so if there are open long positions, it is advisable to determine part of the profit if this level is reached.
Consecontract, which remains a priority, will be implemented if the USD is further weakened and there is clear progress in negotiations between the UK and the EU on a Brexit trade deal.
Deathing the apparent weakness
USD, the activity of sellers of this currency pair remains very low.
Calculating that the pair’s quotes are held above the support level of 105.20, sales are not appropriate, and we are already seeing a marked weakening of buyers.