Analysis of the past week

The past week has become a reversal for the US currency due to a number of factors, among which it is worth noting weak inflation statistics in the US, which reduced the likelihood of tightening monetary policy in the US in the near future. The US withdrawal from the nuclear agreement regarding Iran caused a negative reaction in the eurozone and, as a result, increased the risks associated with the relations between the US and the EU.

As a result, the US dollar index broke the three-week uptrend on the break from the level of 93.50. In turn, the dollar index is limited to the level of 92.40 (Fibo from April 16), from which one should expect the resumption of the uptrend or, at least, the formation of a flat. Assigning an American below 92.40 will indicate a deeper decline in the index to 91.80, but this requires significant grounds.

Graph of the US dollar index H4. The current price is 92.60 (the profitability of 10-year government bonds is a blue line)

Hanzenko Anton