Analysis of past week

As a result of the last trading week, the US dollar index updated a year’s low at around 95.00 and decreased by about 1.2%. This fell in the middle of the week and was caused by the alternate statements of the US Federal Reserve System representatives about the refusal of the policy of raising interest rates hike in the United States. As a result, the dollar index has accelerated the downward dynamics, which can be traced from the middle of December last year.

Against the background of oversold and renewed pessimism on stock exchanges, by the end of the work week, the American dollar moved to growth. Correction of positions on the American dollar on Friday returned the dollar index to the established trend and gave a hint at the possibility of forming a correction against the decline. Further growth of the dollar is limited by resistance levels: 95.70 and 96.00 and its overbought.

On Monday, we should expect a move against Friday with a test of support: 95.50 and 95.30. The rebound from these levels may indicate the formation of a full-scale correction against a monthly decline.

The US dollar index H4 chart. The current price is 96.70 (10-year government bonds yield is the blue line)

Hanzenko Anton