Analysis of the last week

The last week was not full of news, which affected the activity of the trade. For most currency pairs, there was a restrained dynamics, which was limited to a lateral trend. Safe haven assets can be considered as an exception. They have visibly strengthened against the American on the flight of investors from risks.

The flight of investors from risks and the reduction of the US dollar were caused by data on the revision of the tax reform in the United States. For more details about market expectations on this issue, please refer here.

This news turned out to be quite unexpected for the market, as pointed out by the ambiguous dynamics of the US currency. An additional factor of uncertainty was provided by Trump’s visit to China, which also made investors to look with caution at the market.

Despite the very negative data on the US, the US currency index is trading within the correction of the uptrend, which can be traced from September. The level of 94.100-000 is a significant resistance level for the dollar index and it is possible to repel from it. The breakthrough of this level will open the way to the support levels: 93.800 and 93.500, which also calls into question the preservation of the uptrend.

Anton Hanzenko