Analysis of the past week

The last week of January turned out to be very negative for the US currency, as a result of which the US dollar index updated the last weeks lows at the level of 95.10 and 0.20%. The reason for the sale of the US dollar continued to be negative expectations about the monetary policy of the US Federal Reserve, which was confirmed, and the lack of progress in trade negotiations.  The US – China trade relations, which are in limbo now, remains the main fundamental factor of pressure on the dollar. A significant decline in the American dollar fell on the soft rhetoric of the Fed, which refuted market expectations for the US interest rates.

The US dollar index spent a week in a downward correction against the growth a week earlier, forming a downward trend, which indicates the potential for further dollar decline. Significant support are the levels: 95.30 and 95.00, resistance: 95.80-70 and 96.00.

The US dollar index H4 chart. The current price is 95.60 (10-year government bonds yield is the blue line)

Hanzenko Anton