EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Pulls Back As Traders Bet On A Less Hawkish Fed

Key Insights

• Today, traders focused on the problems of the U.S. regional banks. 
• The disappointing JOLTs Job Openings and Factory Orders reports put pressure on the U.S. dollar. 
• USD/CAD gained ground amid a strong sell-off in the oil markets. 

U.S. Dollar

U.S. Dollar Index pulled back amid concerns about the health of the U.S. regional banks. JOLTs Job Openings and Factory Orders reports missed analyst expectations, which served as an additional bearish catalyst for the American currency.

In case U.S. Dollar Index settles below the 102 level, it will move towards the next support at 101.50. A successful test of this level will push U.S. Dollar Index towards the support at 101.05.

R1:102.30 – R2:102.65 – R3:102.80

S1:102.00 – S2:101.50 – S3:101.05

EUR/USD

EUR/USD rebounded as traders reacted to the Euro Area inflation reports. The report showed that Euro Area Inflation Rate increased from 6.9% in March to 7% in April, while Euro Area Core Inflation Rate declined from 5.7% to 5.6%.

If EUR/USD settles back above 1.1000, it will move towards the next resistance at 1.1030. A move above 1.1030 will push EUR/USD towards the resistance at 1.1050.

R1:1.1000 – R2:1.1030 – R3:1.1050

S1:1.0970 – S2:1.0940 – S3:1.0910

GBP/USD

GBP/USD pulled back as traders continued to take profits near yearly highs. Most likely, traders will stay cautious ahead of the Fed decision, which will be released tomorrow.

If GBP/USD settles below the support at 1.2460, it will move towards the next support level at 1.2430. On the upside, a move above 1.2500 will push GBP/USD towards the resistance at 1.2525.

R1:1.2500 – R2:1.2525 – R3:1.2550

S1:1.2460 – S2:1.2430 – S3:1.2400

USD/CAD

USD/CAD rallied as oil markets found themselves under strong pressure. WTI oil declined by 5% amid concerns about the banking crisis in the U.S.

The nearest resistance level for USD/CAD is located at 1.3650. In case USD/CAD manages to settle above this level, it will move towards the resistance at 1.3680. A successful test of the resistance at 1.3680 will open the way to the test of the 1.3700 level.

R1:1.3650 – R2:1.3680 – R3:1.3700

S1:1.3610 – S2:1.3570 – S3:1.3550

USD/JPY

USD/JPY pulled back as traders took some profits off the table after the recent rally. Fundamentally, the ultra-dovish policy of the BoJ will remain an important bearish catalyst for the yen.

If USD/JPY declines below the support at 136.50, it will move towards the next support level at 135.50. On the upside, a move above 137 will push USD/JPY towards the resistance at 137.90.

R1:137.00 – R2:137.90 – R3:139.00

S1:136.50 – S2:135.50 – S3:135.10

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