Analysis of the past week

The first full summer week is closed significantly below the opening for the US dollar index , thereby confirming the safety of the downward corrective trend for the American dollar. The reason for the sale of the dollar continues to be the growth of optimism in the stock markets and the strengthening of the euro, which, after lowering geopolitical risks, received support on the rumors of the start of the curtailment of the stimulus program (QE) in the euro area.

The US dollar index on these news was fixed below the psychology of 94.00 and is limited by the resistance zone 94.00-93.80, which corresponds to the upper limit of the downward channel. In the conditions of preservation of the given dynamics the American dollar will return to minimum of week 93.40-20, updating which, in turn, will specify on the further decrease.

US dollar index H4 Chart. The current price is 93.60 (the yield of 10-year government bonds is a blue line)

Hanzenko Anton