Analysis of the past week

As a result of the outgoing week, a high level of risk remains around the US-Chinese trade war. Additional risk factors are also the parliamentary elections in the eurozone and the exacerbation of tensions in the Middle East.

In the conditions of clearly aggravated relations between the USA and China, which was traced during the week, the US dollar gained a considerable support, which significantly strengthened against commodity currencies and the British pound. The British pound, in turn, was under considerable pressure from political risks and the actual inoperability of the government.

The US dollar index for the week showed a steady strengthening against a basket of competitors and the actual growth of about 1%. In terms of the overall picture, this allowed the US dollar index to reverse the monthly downward trend and get close to the resistance of 98.00. At the same time, it is worth highlighting a significant overbought of the dollar, which at the opening of the new week may cause a correction. The driver for the correction can serve as a general risk reduction. Support levels: 97.80 and 97.60, resistance levels 98.00 and 98.20.

Fig. The US dollar index H4 chart. The current price is 97.90 (10-year government bonds yield is the blue line)

Hanzenko Anton