EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Ground As Treasury Yields Keep Moving Higher

Key Insights

• EUR/USD is trying to settle below the support at 1.0940.
• USD/CAD rebounds as oil markets pull back after the recent rally. 
• USD/JPY continues its attempts to climb above the resistance at 135.10.

U.S. Dollar

U.S. Dollar Index rebounds as Treasury yields continue to move higher. IBD/TIPP Economic Optimism index declined from 47.4 in April to 41.6 in May. The report did not put any pressure on the American currency.

The nearest resistance level for the U.S. Dollar Index is located at 102.00. In case the U.S. Dollar Index climbs above this level, it will head towards the next resistance at 102.30. A move above 102.30 will push the U.S. Dollar Index towards the 102.60 level.

R1:102.00 – R2:102.30 – R3:102.60

S1:101.50 – S2:101.05 – S3:100.80

EUR/USD

EUR/USD pulled back as traders waited for additional catalysts that could push EUR/USD towards yearly highs. From a big picture point of view, EUR/USD continues consolidation in the 1.0940 – 1.1100 range.

In case EUR/USD declines below 1.0940, it will head towards the support at 1.0910. A successful test of the support at 1.0910 will open the way to the test of the support at 1.0880.

R1:1.0970 – R2:1.1000 – R3:1.1030

S1:1.0940 – S2:1.0910 – S3:1.0880

GBP/USD

GBP/USD is swinging between gains and losses near yearly highs. Today, traders had a chance to take a look at the Halifax House Price Index report from the UK, which indicated that house prices declined by 0.3% month-over-month in April.

If GBP/USD declines below the 1.2600 level, it will head towards the support at 1.2580. A move below 1.2580 will push GBP/USD towards the support level at 1.2550.

R1:1.2650 – R2:1.2690 – R3:1.2730

S1:1.2600 – S2:1.2580 – S3:1.2550

USD/CAD

USD/CAD rebounds as oil markets pull back after the recent rally. The pullback is not strong, and it remains to be seen whether USD/CAD will be able to gain additional upside momentum.

A move above the resistance at 1.3410 will push USD/CAD towards the next resistance level at 1.3450. In case USD/CAD climbs above this level, it will move towards the next resistance at 1.3490.

R1:1.3410 – R2:1.3450 – R3:1.3490

S1:1.3385 – S2:1.3350 – S3:1.3315

USD/JPY

USD/JPY continues its attempts to settle above the resistance at 135.10. Rising Treasury yields serve as the key bullish catalyst for USD/JPY.

If USD/JPY settles above the 135.10 level, it will head towards the next resistance at 135.75. On the support side, a move below 134.50 will push USD/JPY towards the support at 134.00.

R1:135.10 – R2:135.75 – R3:136.50

S1:134.50 – S2:134.00 – S3:133.50

For a look at all of today’s economic events, check out our economic calendar.