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EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Is Mostly Flat In Quiet Trading
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Traders have already started to prepare for the Fourth of July.
Key Insights
- EUR/USD settled above the 1.0900 level.
- GBP/USD remains stuck near the 1.2700 level.
- USD/JPY gains some ground as Treasury yields rebound after a pullback.
U.S. Dollar
U.S. Dollar Index is mostly flat as traders react to the ISM Manufacturing PMI report, which showed that the manufacturing sector remained under pressure.
From the technical point of view, U.S. Dollar Index is stuck in the 102.00 – 103.45 range, and it needs additional catalysts to gain momentum.
EUR/USD
EUR/USD continues its attempts to settle above the resistance area in the 1.0900 – 1.0935 range. The final reading of the Euro Area Manufacturing PMI showed that Euro Area Manufacturing PMI declined from 44.8 in May to 43.4 in June, compared to analyst consensus of 43.6. The report did not have a material impact on currency dynamics as traders are not ready for big moves ahead of the U.S. holiday.
A move above the resistance at 1.0935 will open the way towards the next resistance area in the 1.1070 – 1.1095 range. On the support side, EUR/USD will likely get strong support in the 1.0800 – 1.0825 area.
GBP/USD
GBP/USD is also little changed in calm trading. Traders are waiting for the U.S. holiday and show little reaction to Manufacturing PMI reports.
The support level in the 1.2630 – 1.2660 range has shown its strength so GBP/USD may try to gain additional upside momentum in the upcoming trading sessions.
USD/CAD
USD/CAD remains stuck in the 1.3240 – 1.3265 range. Oil markets move higher as Russia announced additional production cuts, but this move does not provide material support to the Canadian currency.
In case USD/CAD settles above the 1.3265 level, it will head towards the resistance in the 1.3360 – 1.3380 range. On the support side, the nearest material support level for USD/CAD is located in the 1.3180 – 1.3210 range.
USD/JPY
USD/JPY continues to stabilize after the recent rally. Treasury yields rebounded after a short pullback, which served as an additional bullish catalyst for USD/JPY.
RSI remains in the overbought territory so USD/JPY will likely need more catalysts to settle above 145.20.
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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