Analysis of the past week

As a result of the week and May, the US dollar index closes in positive territory, losing a significant part of the positions earned this week due to the exacerbation of the risks of a trade war. The week for the American dollar closes with an increase of about 0.25%. In this case, the dollar actually retreated from monthly highs at 98.30.

The driver for the sale of the American dollar at the close of the week became the risks of a trade war that threaten the global economy. After China’s statements about the possibility of restricting the sale of rare-earth minerals within the framework of the trade confrontation with the United States, and Trump’s statement regarding 5% of duties on Mexican goods, fears of trade risks exacerbated the market, which fully resulted in the sale of the US dollar across the market. An additional factor to the decline in the dollar was the technical correction against the almost weekly growth.

As a result of Friday’s collapse, the US dollar index lost more than 0.40%. But the monthly and overall dynamics of the American dollar remained upward, indicating the potential for strengthening and resuming growth. Significant support zone is located at levels: 97.80 and 97.60. At the opening of the new week, this may indicate the formation of a movement against Friday. The resistance zone is located at the levels: 98.00 and 98.20.

Fig. The US dollar index H4 chart. The current price is 97.80 (10-year government bonds yield is the blue line)

Hanzenko Anton