EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Pulls Back As Traders React To PMI Data
- EUR/USD moved back above the 1.0700 level.
- GBP/USD found strong support near 1.2370.
- USD/JPY pulled back below the 140 level as Treasury yields declined.
U.S. Dollar Index pulled back as traders reacted to the ISM Services PMI report, which missed analyst expectations. Treasury yields moved lower, serving as an additional bearish catalyst for the American currency.
The nearest support level for the U.S. Dollar Index is located at 103.75. In case the U.S. Dollar Index settles below this level, it will head towards the next support at 103.50.
R1:104.10 – R2:104.45 – R3:104.70
S1:103.75 – S2:103.50 – S3:103.20
EUR/USD rebounded from session lows and settled above the 1.0700 level. The final reading of the Euro Area Services PMI report showed that Euro Area Services PMI declined from 56.2 in April to 55.1 in May, compared to analyst consensus of 55.9.
In case EUR/USD settles above the resistance at 1.0730, it will head towards the next resistance level at 1.0750. A move above this level will push EUR/USD towards the resistance at 1.0775.
R1:1.0730 – R2:1.0750 – R3:1.0775
S1:1.0700 – S2:1.0670 – S3:1.0635
GBP/USD found support near 1.2370 and moved towards the 1.2450 level as traders focused on U.S. dollar’s pullback.
The next resistance level for GBP/USD is located at 1.2470. In case GBP/USD manages to settle above this level, it will head towards the resistance at 1.2485.
R1:1.2470 – R2:1.2485 – R3:1.2510
S1:1.2440 – S2:1.2400 – S3:1.2370
USD/CAD is mostly flat despite the continuation of the rebound in the oil markets. Meanwhile, other commodity-related currencies are gaining some ground in today’s trading session.
If USD/CAD settles below the support at 1.3410, it will move towards the next support level at 1.3380. A successful test of this level will push USD/CAD towards the support at 1.3335.
R1:1.3440 – R2:1.3485 – R3:1.3530
S1:1.3410 – S2:1.3380 – S3:1.3335
USD/JPY pulled back as Treasury yields moved lower. USD/JPY remains extremely sensitive to Treasury yields dynamics as traders do not expect changes in the BoJ policy.
A move below the support at 138.70 will push USD/JPY towards the next support level at 137.50. On the upside, USD/JPY needs to climb back above 140.50 to have a chance to gain sustainable momentum.
R1:139.60 – R2:140.50 – R3:141.60
S1:138.70 – S2:137.50 – S3:136.50
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