USD, international oil price: build mt4 MT5 foreign exchange analysis

As the market worried about the impact of the Fed's interest rate hike on the scope and depth of the US economic slowdown, the US dollar weakened in the past few trading days.

The Federal Reserve made it clear that inflation would be its policy focus in the future. In response, US bond yields resumed rising overnight. The benchmark 10-year US Treasury yield rose to around 3.18%, although it fell a few basis points during today's Asia Pacific session.

Rising U.S. bond yields pushed gold lower to below $1830, but international crude oil prices rose because the OPEC meeting will be held tomorrow, and market concerns about supply rose again on the eve of the meeting.

The political turmoil in Ecuador and Libya and the comments of the UAE energy minister Suhail al mazrouei have limited the prospects for crude oil production.

Suhail al mazrouei said that Afghanistan's crude oil production is close to the upper limit of production capacity. The United Arab Emirates is considered to be one of the few oil producing countries in the world that can fill the supply gap after the sanctions on Russian crude oil.

WTI crude oil futures hit US $111 / barrel during the Asia Pacific session today, while Brent crude oil stood at US $116 / barrel.

The focus of the commodity market turned to the selling of industrial metals. As global growth concerns rose, copper and tin prices continued to fall.

The performance of Asia Pacific stock markets was mixed, with Australia and Japan slightly stronger, while Chinese Mainland and Hong Kong slightly weaker.

The euro held yesterday's rise. Today, the foreign exchange market as a whole was relatively calm, but the Norwegian Krona linked to oil prices continued to perform strongly.

On today's financial calendar, the speeches of the European Central Bank forum and San Francisco Fed chairman Dali deserve attention. In addition, U.S. consumer confidence data will be released this evening.

Technical analysis of dollar index

Despite the recent decline, the dollar index remains far above the upward trend line in March.

The resistance level can be seen towards the 10 day moving average at or near the recent high of 105.79.

On the downside, the support level can be seen as the low of 103.42 or 102.20 of the online upward trend.