EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Pulls Back As Dallas Fed Manufacturing Index Misses Expectations

Key Insights

• U.S. Dollar Index is trying to settle below the support at 101.50.
• EUR/USD moved to new highs after the release of the Ifo Business Climate report from Germany. 
• USD/JPY tested resistance at 134.50 despite lower Treasury yields. 

U.S. Dollar

U.S. Dollar Index pulled back towards the 101.50 level after the release of the Dallas Fed Manufacturing Index report. The report showed that Dallas Fed Manufacturing Index declined from -15.7 in March to -23.4 in April. Treasury yields moved lower, which was bearish for the American currency.

In case the U.S. Dollar Index settles below the 101.50 level, it will move towards the support at 101.05. A successful test of the support at 101.05 will open the way to the test of the next support level at 100.80.

R1:102.00 – R2:102.30 – R3:102.60

S1:101.50 – S2:101.05 – S3:100.80

EUR/USD

EUR/USD gained ground as traders reacted to the Ifo Business Climate report from Germany. The report indicated that Business Climate improved from 93.2 in March to 93.6 in April, compared to analyst consensus of 94.

Currently, EUR/USD is trying to settle above the 1.1030 level. In case this attempt is successful, EUR/USD will move towards the next resistance at 1.1050. On the support side, a successful test of the 1.1000 level will open the way to the test of the next support level at 1.0970.

R1:1.1030 – R2:1.1050 – R3:1.1070

S1:1.1000 – S2:1.0970 – S3:1.0940

GBP/USD

GBP/USD gained some ground in today’s trading session as traders focused on the general weakness of the American currency.

If GBP/USD manages to settle above the resistance at 1.2460, it will move towards the next resistance level at 1.2500. A move above this level will push GBP/USD towards the resistance at 1.2525.

R1:1.2460 – R2:1.2500 – R3:1.2525

S1:1.2430 – S2:1.2390 – S3:1.2360

USD/CAD

USD/CAD pulled back from session highs as oil markets rebounded from session lows. Today, traders also focused on the New Housing Price Index report from Canada. The report showed that new home prices in Canada remained unchanged in March.

The nearest support level for USD/CAD is located at 1.3530. In case USD/CAD declines below this level, it will move towards the next support at 1.3500. On the upside, a move above the resistance at 1.3550 will push USD/CAD towards the 1.3570 level.

R1:1.3550 – R2:1.3570 – R3:1.3610

S1:1.3530 – S2:1.3500 – S3:1.3470

USD/JPY

USD/JPY gained some ground despite the pullback in Treasury yields. Traders have already started to prepare for the BoJ Interest Rate Decision, which will be released on Friday.

In case USD/JPY settles above the resistance at 134.50, it will head towards the next resistance level at 135.10. On the support side, a move below the 133.75 level will open the way to the test of next support at 133.00.

R1:134.50 – R2:135.10 – R3:135.50

S1:133.75 – S2:133.00 – S3:132.20

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