Today we expect the release of the manufacturing activity index from the Federal Reserve Bank. It is expected that it will be at the level of 21.6, rising from the level of 19.9. At the time of release we can expect an acceleration in the markets.
Our pair was reflected from the level of 1.1710 and headed down to the level of 1.1550.
The dollar index again peaked and exceeded the 95.00 mark, and it doesn't seem to be nearing a stop. Against this background, a number of commodity futures markedly subsided.
Furthermore, investors against the background of trade wars between the US and China preferred the dollar as a "quiet harbor" and began investing in it. The Fed's hawkish policy encourages such behavior and everyone expects that the interest rate will be raised two more times this year.
Therefore, we recommend considering the opportunity to enter short positions. We expect that the pair will soon update its annual lows.
