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EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Moves Higher After PMI Reports

By:
Vladimir Zernov
Published: Jul 24, 2023, 16:17 GMT+00:00

U.S. dollar continues to rebound from July lows as traders prepare for the Fed decision, which will be released on Wednesday.

DXY

In this article:

Key Insights

  • EUR/USD settled below the 1.1100 level as traders reacted to the disappointing PMI reports.
  • GBP/USD moved towards the 1.2800 level as the pullback continued. 
  • USD/CAD moved lower as oil markets rallied. 

U.S. Dollar

DXY
DXY 240723 4h Chart

U.S. Dollar Index continues its attempts to settle above the resistance at 101.00 – 101.15 as traders react to PMI reports. Manufacturing PMI increased from 46.3 in June to 49 in July, while Services PMI declined from 54.4 to 52.4.

In case U.S. Dollar Index stays above the 101.15 level, it will move towards the next resistance in the 102.00 – 102.15 range.

EUR/USD

EUR/USD
EUR/USD 240723 4h Chart

EUR/USD remains under pressure as traders focus on the PMI data from Europe. Euro Area Manufacturing PMI declined from 43.4 in June to 42.7 in July, while Euro Area Services PMI decreased from 52 to 51.1. The reports showed that the European manufacturing segment remained under strong pressure.

From the technical point of view, a successful test of the support in the 1.1070 – 1.1095 range will open the way to the test of the next support level, which is located at 1.0950 – 1.0975.

GBP/USD

GBP/USD
GBP/USD 240723 4h Chart

GBP/USD is also moving lower after PMI reports. UK Manufacturing PMI decreased from 46.5 in June to 45 in July, while UK Services PMI declined from 53.7 to 51.5.

RSI is close to the oversold territory, but there is enough room to gain additional downside momentum. A move below the 1.2820 level will push GBP/USD towards the next support in the 1.2725 – 1.2750 range.

USD/CAD

USD/CAD
USD/CAD 240723 4h Chart

USD/CAD pulls back as traders focus on the strong rally in the commodity markets. Other commodity-related currencies are also moving higher in today’s trading session.

If USD/CAD declines below the 1.3150 level, it will head towards the support in the 1.3090 – 1.3120 range.

USD/JPY

USD/JPY
USD/JPY 240723 4h Chart

USD/JPY has started to rebound from session lows as Treasury yields are moving higher. Traders prepare for the Fed decision, which will be released on Wednesday.

Currently, USD/JPY is stuck in the range between the support at 140.80 and the resistance at 141.85. Despite the recent pullback, the near-term trend stays bullish.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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