Analysis of the past day

On Friday, the US dollar index weakened significantly against a basket of competitors. The reason for such a rapid sale of the American dollar was the disappointment of the market with a speech  of the US Federal Reserve Chairman. The head of the US Federal Reserve Powell did not indicate the possibility of stopping the rates cuts in the United States, which was expected by the market, causing the rapid decline of the American dollar for working out this opportunity, from which it had received support previously. And given the correction of positions before the weekend, the pressure on the dollar intensified.

Stock indices also weakened after the American dollar and the growth of other world currencies. (Nikkei225 +0.40; DAX -0.80; FTSE 100 -0.20; Dow 30 -1.20)

A decrease in the US dollar index at the end of the week indicates the formation of a downtrend, but is limited by oversold and the possibility of movement against Friday. Significant support area is located at the levels of 97.80 and 97.70.

Fig. The US dollar index chart. Current price – 97.80 (10-year US government bonds yield – blue line)

Hanzenko Anton