Analysis of the past week

The outgoing week turned out to be very mixed. It was caused by the ambiguous dynamics of stock indices and the rapid change in market sentiment. In the first place, it put pressure on European currencies, which, in turn, remained under pressure from fundamental risks, such as the Italian budget and the delaying of Brexit negotiations.

But amid glimmers of the positive dynamics of global stock markets due to the period of corporate reporting and positive reports, with an increase in optimism on stock indices, investors retreated from the risks associated with an increase in US rates and returned to the US dollar as a safe asset.

At the end of the week, the US dollar index returned to the  month highs and updated the resistance level of 96.00, which formed a steady uptrend. But because of the technical correction of positions and overbought, the American dollar was limited in growth, while retaining the potential for strengthening in repulse from support levels: 95.70 and 95.50.

The US dollar index H4 chart. The current price is 95.80 (10-year government bonds yield is the blue line)

Hanzenko Anton