Analysis of the past week

The outgoing week has become very volatile and multidirectional, especially for the US currency. So, throughout most of the trading week, the US dollar index traded in a steady upward trend and updated the maximum of the month and year, helped by the rise in optimism around the rate hike in the US, helped by the statements of the US Federal Reserve Chairman.

Despite optimistic comments and moods, this week may also become a reversal for the American dollar. Especially after several statements by the US President, D. Trump, who expressed fears about raising rates and a strong US currency.

As a result, the US dollar index closes the week near the lower border of the upward channel, limited to the support zone of 94.60-40. At the same time, an upward trend for the dollar is maintained, but if the attacks towards the dollar and the FRS’s tight policy continue, the US dollar index may break the upward trend.

The US dollar index H4 chart. The current price is 94.60 (10-year government bonds yield is a blue line)

Hanzenko Anton