Analysis of the past week

The past week was very volatile, which was caused by the plenty of news and significant statements. The main event of the week was a noticeable increase in optimism about two rate increases in US Federal Reserve this year, helped by retail sales data in the US.

In addition to the fact that the market pawns in American dollar’s price the possibility of two increases, the American dollar was supported by the growth of optimism in the stock markets before the beginning of the period of corporate reporting. And it despite the fact that concerns about the trade confrontation between the US and China remain in place.

Also, the market is gradually preparing for Trump’s new meetings and his negotiations on trade relations, thereby explaining the significant correction of positions of the dollar at the end of the working week.

At the end of the week, the US dollar index closes the trades, forming a stable upward weekly trend, which is limited by resistance at 95.20 and 95.50, resistance: 94.80 and 94.60.

The US dollar index H4 chart. The current price is 94.80 (10-year government bonds yield is a blue line)

Hanzenko Anton