Global macro overview for 19/04/2017:

The recent interview with US Treasury Secretary Steve Mnuchin published in the Financial Times provided some favorable tone for the US Dollar. Conclusions from Mnuchin's interview shows a different point of view on the Dollar after Trump in an interview to the Wall Street Journal last week made it clear that "the Dollar is too strong". Mnuchin questioned whether Trump administration's strategy was to weaken the US Dollar, stated that President Trump merely made a "real impact assessment" of the Dollar's strength in the short term and "absolutely did not intend to verbally weaken the Dollar". Moreover, on the issue of the eventual intervention, he said that "there is a big difference between talking about it and acting". In conclusion, these comments aimed to cheer up the recent negative sentiment among global investors towards the US Dollar, so traders need to wait in order to see the results in financial markets.

Let's now take a look at the US Dollar index technical picture on the H4 timeframe. The market is trading in oversold conditions around the support at the level of 99.53, below all of the moving averages. There is no real sign of any rally towards the next technical resistance at the level of 100.00 as the market is waiting for the fundamental trigger. The most important support is the zone between the levels of 99.21 - 98.85.