EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Ground On Hawkish Fed Bets

Key Insights

• EUR/USD declined below the 1.0850 level. 
• GBP/USD slipped towards 1.2360 as the strong pullback continued. 
• USD/JPY rallied towards the resistance at 133.75 as traders focused on rising Treasury yields. 

U.S. Dollar

U.S. Dollar Index gained upside momentum as Treasury yields moved higher. The yield of 2-year Treasuries is currently trying to settle above the 4.00% level, which is bullish for the American currency.

U.S. Dollar Index is trying to settle above the 102.80 level. In case this attempt is successful, the U.S. Dollar Index will move towards the next resistance at 103.00. On the support side, a move below the 102.50 level will push the U.S. Dollar Index back towards the 102 level.

R1:102.80 – R2:103.00 – R3:103.30

S1:102.50 – S2:102.00 – S3:101.50

EUR/USD

EUR/USD pulled back below the 1.0850 level as traders focused on rising Treasury yields. There are no important economic reports scheduled to be released in the EU today due to Easter Monday, so traders will stay focused on general market sentiment.

In case EUR/USD stays below the 1.0850 level, it will move towards the next support level at 1.0820. A successful test of the support at 1.0820 will open the way to the test of the 1.0790 level.

R1:1.0850 – R2:1.0885 – R3:1.0910

S1:1.0820 – S2:1.0790 – S3:1.0760

GBP/USD

GBP/USD declined towards the 1.2360 level as the strong pullback continued. The bulls will need additional positive catalysts to have a chance to push GBP/USD back towards recent highs.

A successful test of the 1.2360 level will push GBP/USD towards the next support at 1.2325. On the upside, GBP/USD needs to get back above the 1.2390 level to gain upside momentum in the near term.

R1:1.2390 – R2:1.2430 – R3:1.2460

S1:1.2360 – S2:1.2325 – S3:1.2300

USD/CAD

USD/CAD is moving higher as oil markets pull back. Rising Treasury yields serve as an additional positive catalyst for USD/CAD.

In case USD/CAD manages to settle above the 1.3550 level, it will gain additional upside momentum and move towards the next resistance at 1.3580. On the support side, a move below 1.3520 will open the way to the test of the support at 1.3480.

R1:1.3550 – R2:1.3580 – R3:1.3625

S1:1.3520 – S2:1.3480 – S3:1.3450

USD/JPY

USD/JPY rallied as traders focused on rising Treasury yields. Traders prepare for a 25 bps rate hike at the next Fed meeting.

Currently, USD/JPY is trying to settle above the important resistance at 133.75. A move above this level will push USD/JPY towards the next resistance level, which is located at 134.50.

R1:133.75 – R2:134.50 – R3:135.10

S1:133.00 – S2:132.20 – S3:131.85

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