Analysis of the past week

The outgoing trading week turned out to be very positive for the US currency, despite very restrained trading in the second half of the week. Thus, the US dollar index closes the week in a noticeable plus, moving from multi-month lows. The main driver of the American dollar’s growth during the week was a general reduction in global risks, despite some uncertainty in the United States and the lack of clear agreements between the United States and China.

Technically, the US dollar index, despite the safety of upward dynamics, remains trapped between two trends. The limited dollar was expressed in lateral movement near the level of 96.20, which corresponds to the upper border of the downward trend. At the same time, attempts to consolidate above 96.20 indicate the possibility of breaking the general downward channel and further growth to resistance levels: 96.50 and 96.70. Support is located at levels: 96.00 and 95.70.

The US dollar index H4 chart. The current price is 96.30 (10-year government bonds yield is the blue line)

Hanzenko Anton