EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Dives After PPI Reports

Key Insights

• EUR/USD is trying to settle above the 1.1050 level. 
• GBP/USD moved to new highs as traders reacted to U.S. PPI data. 
• USD/CAD settled below the 1.3350 level. 

U.S. Dollar

U.S. Dollar Index moved towards yearly lows after the release of PPI reports. PPI declined by 0.5% month-over-month in March, compared to analyst consensus of 0%. Core PPI decreased by 0.1%, while analysts expected that it would grow by 0.3%.

The nearest support level for U.S. Dollar Index is located at 100.80. In case U.S. Dollar Index settles below this level, it will move towards the next support at 100.50. A successful test of the 100.50 level will open the way to the test of the support at 100.20.

R1:101.05 – R2:101.50 – R3:102.00

S1:100.80 – S2:100.50 – S3:100.20

EUR/USD

EUR/USD tested new highs as traders reacted to U.S. PPI data, In Europe, Euro Area Industrial Production increased by 1.5% month-over-month in February, providing additional support to the European currency.

If EUR/USD manages to settle above the 1.1050 level, it will head towards the next resistance at 1.1075. A move above 1.1075 will push EUR/USD towards the resistance at 1.1100.

R1:1.1050 – R2:1.1075 – R3:1.1100

S1:1.1030 – S2:1.1000 – S3:1.0970

GBP/USD

GBP/USD gained ground despite disappointing Industrial Production and Manufacturing Production reports from the UK. Fed policy outlook remains the key driver for GBP/USD.

From a big picture point of view, GBP/USD is trying to settle above recent highs. In case this attempt is successful, GBP/USD will gain additional upside momentum.

R1:1.2525 – R2:1.2560 – R3:1.2600

S1:1.2500 – S2:1.2460 – S3:1.2430

USD/CAD

USD/CAD tested new lows as commodity-related currencies gained strong upside momentum. The rally in precious metals markets provided significant support to the Canadian dollar.

If USD/CAD settles below the support at 1.3325, it will move towards the next support level at 1.3300. On the upside, USD/CAD needs to climb back above the 1.3360 level to have a chance to gain upside momentum in the near term.

R1:1.3360 – R2:1.3380 – R3:1.3410

S1:1.3325 – S2:1.3300 – S3:1.3275

USD/JPY

USD/JPY pulled back after the release of U.S. PPI data. However, USD/JPY bulls do not panic as Treasury yields have not moved lower.

In case USD/JPY settles below the support at 132.20, it will head towards the support level at 131.85. A move below this level will open the way to the test of the support at 131.50.

R1:133.00 – R2:133.75 – R3:134.50

S1:132.20 – S2:131.85 – S3:131.50

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