Analysis of the past week

At the end of the week, the market retained clear pronounced dynamics of the correction of the US dollar against a decrease earlier. In addition to the technical correction, several factors served as the reason for the recovery of the American dollar. Preservation of trade and political uncertainty on Brexit, which, first of all, increased pressure on commodity currencies and European currencies.

The US dollar index strengthened by 0.7% over the week against a basket of major competitors and approached a significant resistance at 97.80, which corresponds to the Fibonacci retracement level of 23.6 from the October 1 high. This indicates the formation of a correction and upward dynamics, which, in turn, is limited by overbought and resistance levels: 97.80, 98.00 and 98.20. Support continues to be the marks: 97.50, 97.30 and 97.00.

Fig. The US Dollar Index H4 chart. Current price – 97.80 (10-year government bonds yield – blue line)

Hanzenko Anton