EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Is Mostly Flat As Traders Wait For Catalysts

Key Insights

• EUR/USD consolidates after the recent rally. 
• GBP/USD pulls back on profit-taking. 
• USD/CAD is losing ground despite the pullback in the oil markets. 

U.S. Dollar

U.S. Dollar Index remains stuck below the 100 level as Treasury yields are moving lower.

From the technical point of view, U.S. Dollar Index is stabilizing after the strong sell-off. There is no rebound, which indicates that market sentiment remains bearish.

EUR/USD

EUR/USD is trading near recent highs as traders believe that ECB will be forced to raise rates at a time when Fed finishes its rate hike cycle.

Taking a look at the daily chart, EUR/USD remains overbought, so it may need more time to stabilize near current levels before it will be ready to move towards the resistance in the 1.1280 – 1.1310 range.

GBP/USD

GBP/USD pulls back as traders take some profits off the table near yearly highs. There are no important economic reports scheduled to be released in the UK today so traders will stay focused on general market sentiment.

RSI moved back into the moderate territory so GBP/USD has a good chance to gain upside momentum in case it manages to climb back above the 1.3100 level.

USD/CAD

USD/CAD is losing ground despite the pullback in the oil markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

In case USD/CAD settles below the 1.3150 level, it will move towards the support, which is located near the recent lows in the 1.3090 – 1.3120 range.

USD/JPY

USD/JPY continues its attempts to rebound after a strong pullback. It remains to be seen whether it will gain upside momentum as Treasury yields are moving lower.

If USD/JPY settles above the 139 level, it will head towards the resistance in the 140.45 – 140.80 range. On the support side, a move below 138.50 may lead to a sell-off.

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