EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Moves Higher As Traders Prepare For Fed Meeting

Key Insights

• EUR/USD faced strong resistance near 1.0780 and pulled back. 
• GBP/USD moved towards the 1.2500 level as traders took some profits off the table. 
• USD/CAD rebounded from multi-week lows. 

U.S. Dollar

U.S. Dollar Index continues to rebound as Treasury yields are moving higher ahead of the Fed Interest Rate decision, which will be released on Wednesday.

A move above the 103.75 level will push the U.S. Dollar Index towards the resistance at 104.10. If the U.S. Dollar Index climbs above 104.10, it will head towards the 104.40 level.

R1:103.75 – R2:104.10 – R3:104.40

S1:103.50 – S2:103.20 – S3:103.00

EUR/USD

EUR/USD pulled back after an unsuccessful attempt to settle above the 1.0780 level. There are no important economic reports scheduled to be released in the EU today, so traders will stay focused on general market sentiment.

If EUR/USD settles below the support at 1.0750, it will move towards the next support level at 1.0730. A successful test of this level will push EUR/USD towards the support at 1.0700.

R1:1.0780 – R2:1.0800 – R3:1.0830

S1:1.0750 – S2:1.0730 – S3:1.0700

GBP/USD

GBP/USD pulled back from recent highs as traders took some profits off the table ahead of the Fed decision.

In case GBP/USD manages to settle below the support at 1.2485, it will move towards the next support level at 1.2460. A move below this level will open the way to the test of the support at 1.2410.

R1:1.2510 – R2:1.2540 – R3:1.2580

S1:1.2485 – S2:1.2460 – S3:1.2410

USD/CAD

USD/CAD rebounded from multi-week lows as demand for commodity-related currencies decreased amid a strong sell-off in the oil markets.

A move above the resistance at 1.3380 will push USD/CAD towards the next resistance level, which is located at 1.3410. A successful test of this level will push USD/CAD towards the resistance at 1.3440.

R1:1.3380 – R2:1.3410 – R3:1.3440

S1:1.3335 – S2:1.3300 – S3:1.3275

USD/JPY

USD/JPY continues its attempts to settle above the resistance at 139.60 as traders focus on rising Treasury yields.

In case these attempts are successful, USD/JPY will move towards the 140.50 level. A move above this level will push USD/JPY towards the resistance at 141.60.

R1:139.60 – R2:140.50 – R3:141.60

S1:138.70 – S2:137.50 – S3:136.50

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