Analysis of the past week

The last  September’s week turned out to be very productive for the US currency, that significantly strengthened against the basket of major competitors, having renewed a maximum of two weeks. The main growth of the dollar was the last three days of September, when most of the time the American dollar maintained a steadily downward trend. The reason for the change in sentiment was the US Federal Reserve comments  on another increase in rates this year and very positive data on US GDP.

Also do not forget about the risks of the US and China trade confrontation. It provide passive support to the American dollar and general decline for the euro on the growth of the risk of the Italian budget, that made the euro less attractive for investment.

As a result, the US dollar index closes near the resistance level at 95.40, indicating a complete refraction of the downtrend, which was traced from the middle of August, on the other hand, being in a strong overbought  may indicate the formation of correction. Resistance levels: 95.50 and 95.70-80, support: 95.20-00 and 94.80.

The US dollar index H4 chart. The current price is 95.30 (10-year government bonds yield is a blue line)

Hanzenko Anton