Analysis of the last week

The passed week was marked by the sale of the American currency across the entire spectrum of the market, as the previous week.  The decline of the American was caused by the US Federal Reserve fears of a weak inflation in the US and a drop in liquidity due to the Thanksgiving Day. So, the decline this week was caused by the growing fears of rising inflation in the US, which contained the FOMC protocol, published on Wednesday.

As a result, the US dollar index came closer to the support level 92.600-500 – the minimum of October. Further decline in the dollar index will be limited to this level. But the two-week decline of the American indicates the end of the correction phase for the dollar index and the resumption of the global downtrend.

As for the euro index, it is less overbought than the dollar is oversold. This confirms the preservation of the downward dynamics of the American. Regarding the euro – the significant resistance level is 95.800, the maximum of September.

Hanzenko Anton