EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Attempts To Rebound From Yesterday’s Lows

Key Insights

• EUR/USD pulls back after ECB Interest Rate Decision.
• GBP/USD tests new highs as traders bet that Fed will not be able to raise rates above the current level. 
• USD/JPY remains under pressure as traders focus on the recent pullback in Treasury yields. 

U.S. Dollar

U.S. Dollar Index rebounds after yesterday’s pullback as traders continue to digest Powell’s comments. Treasury yields declined from session highs, which is bearish for the U.S. dollar.

In case U.S. Dollar Index settles above the 101.50 level, it will head towards the next resistance at 102.00. On the support side, a move below 101.05 will push the U.S. Dollar Index towards the yearly lows at 100.80.

R1:101.50 – R2:102.00 – R3:102.30

S1:101.05 – S2:100.80 – S3:100.50

EUR/USD

EUR/USD pulled back after ECB raised the interest rate by 25 bps, in line with the analyst consensus. ECB President Christine Lagarde said that ECB was not pausing, but these comments did not provide enough support to the euro.

If EUR/USD settles below the 1.1000 level, it will head towards the support at 1.0970. A move below 1.0970 will push EUR/USD towards the 1.0940 level.

R1:1.1030 – R2:1.1050 – R3:1.1075

S1:1.1000 – S2:1.0970 – S3:1.0940

GBP/USD

GBP/USD tests new highs as traders remain bullish after yesterday’s Fed Interest Rate Decision. The better-than-expected UK Services PMI report provided additional support to the British pound.

If GBP/USD settles above the resistance at 1.2580, it will head towards the next resistance at 1.2600. A successful test of the 1.2600 level will push GBP/USD towards the resistance at 1.2650.

R1:1.2580 – R2:1.2600 – R3:1.2650

S1:1.2550 – S2:1.2525 – S3:1.2500

USD/CAD

USD/CAD pulled back as oil markets rebounded from multi-week lows. Canada’s Ivey PMI missed analyst expectations but did not put pressure on the Canadian dollar.

If USD/CAD declines below the support at 1.3570, it will head towards the next support level at 1.3550. A move below 1.3550 will push USD/CAD towards the support at 1.3530.

R1:1.3610 – R2:1.3650 – R3:1.3680

S1:1.3570 – S2:1.3550 – S3:1.3530

USD/JPY

USD/JPY continues to move lower as traders react to the recent pullback in Treasury yields. We may have seen Fed’s last rate hike in this cycle, which is bullish for the Japanese yen as the BoJ keeps its rates at the ultra-low level.

A move below the 133.50 level will push USD/JPY towards the support at 133.00. In case USD/JPY declines below 133.00, it will head towards the support at 132.75.

R1:134.00 – R2:134.50 – R3:135.10

S1:133.50 – S2:133.00 – S3:132.75

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