Analysis of the past week

The last week of November can be called a turning point for the market, which was caused by the statement of the US Federal Reserve Chairman Powell that interest rates in the USA are close to the neutral level. For the market it means that the Fed will deliberately stop the rapid tightening of interest rates as early as next year, which means that the American dollar will lose the main driver for growth. At the same time, neither the Fed Chairman nor the latest FOMC protocol denies the possibility of a rate hike in December.

Technically, the US dollar index after the November 28 collapse is in the correction phase, which is facilitated by the growth of risks in the market and the expectation of the December rate hike. The US dollar index also maintains an uptrend, despite attempts at a slowdown and a downward correction. The significant resistance is the level 97.50, support is: 97.00.

The US dollar index H4 chart. The current price is 97.20 (10-year state bonds  yield is the blue line)

Hanzenko Anton