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EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Is Mostly Flat In Choppy Trade
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The American currency moved back and forth as traders reacted to economic reports.
Key Insights
- EUR/USD is mostly flat after the release of the Euro Area Inflation Rate report.
- GBP/USD remains stuck near the 1.2850 level.
- USD/CAD is losing ground as traders focus on the rally in commodity markets.
U.S. Dollar
U.S. Dollar Index is mostly flat as traders react to U.S. economic reports. Dallas Fed Manufacturing Index improved from -23.2 in June to -20 in July, while Chicago PMI increased from 41.5 to 42.8.
From the technical point of view, U.S. Dollar Index remains stuck below the resistance in the 102.00 – 102.15 range. The 200 MA at 101.85 serves as an additional resistance level.
EUR/USD
EUR/USD is also flat after the release of the inflation data from the EU. Euro Area Inflation Rate declined from 5.5% in June to 5.3% in July, while Euro Area Core Inflation Rate remained unchanged at 5.5%.
EUR/USD needs to settle above the resistance at 1.1070 – 1.1095 to gain additional upside momentum. On the support side, a move below the 200 MA at 1.1005 will open the way to the test of the support at 1.0950 – 1.0975.
GBP/USD
GBP/USD settled near the support area at 1.2820 – 1.2850 as traders waited for additional catalysts. GBP/USD did not show any material reaction to Consumer Credit and Mortgage Lending data from the UK.
In case GBP/USD manages to settle above the 50 MA at 1.2870, it will head towards the next resistance level, which is located in the 1.2970 – 1.3000 range.
USD/CAD
USD/CAD pulled back as traders reacted to the strong rally in commodity markets. Other commodity-related currencies have also gained strong upside momentum in today’s trading session.
USD/CAD has already settled below the 50 MA at 1.3195. If USD/CAD settles below the 1.3150 level, it will move towards the support at 1.3090 – 1.3120.
USD/JPY
USD/JPY is trying to settle above the resistance at 141.85 – 142.35. Treasury yields are mostly flat, but traders stay bullish due to the ultra-dovish policy of the BoJ.
In case USD/JPY settles above the 142.35 level, it will move towards the next resistance area, which is located in the 144.65 – 145.00 range.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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