EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Pulls Back Despite Strong Non Farm Payrolls Report

Key Insights

• EUR/USD managed to settle back above the 1.1000 level despite weak Euro Area Retail Sales report. 
• USD/CAD tested new lows as oil markets rallied. 
• USD/JPY moved towards the 135 level as traders focused on rising Treasury yields. 

U.S. Dollar

U.S. Dollar Index lost momentum and pulled back below the 101.50 level as traders reacted to the better-than-expected Non Farm Payrolls report. The report showed that U.S. economy added 253,000 jobs in April, compared to analyst consensus of 180,000.

The nearest support level for the U.S. Dollar Index is located at 101.05. In case the U.S. Dollar Index declines below this level, it will move towards the support at 100.80. A successful test of this level will push the U.S. Dollar Index towards the next support at 100.50.

R1:101.50 – R2:102.00 – R3:102.30

S1:101.05 – S2:100.80 – S3:100.50

EUR/USD

EUR/USD has recently managed to rebound above the 1.1000 level. Today, traders had a chance to take a look at the Euro Area Retail Sales report, which showed that Euro Area Retail Sales declined by 1.2% month-over-month in March.

In case EUR/USD settles back above the resistance at 1.1030, it will move towards the resistance level at 1.1050. On the support side, a move below 1.1000 will push EUR/USD towards the support at 1.0970.

R1:1.1030 – R2:1.1050 – R3:1.1075

S1:1.1000 – S2:1.0970 – S3:1.0940

GBP/USD

GBP/USD tested new highs as traders rushed to buy GBP/USD after the successful test of the 1.2600 level.

If GBP/USD settles above 1.2650, it will head towards the resistance at 1.2690. A move above 1.2690 will open the way to the test of the next resistance at 1.2730.

R1:1.2650 – R2:1.2690 – R3:1.2730

S1:1.2600 – S2:1.2580 – S3:1.2550

USD/CAD

USD/CAD gained strong downside momentum as oil markets gained more than 3% in today’s trading session.

The nearest support level for USD/CAD is located at 1.3410. A move below this level will push USD/CAD towards the support at 1.3385. In case USD/CAD declines below 1.3385, it will head towards the 1.3350 level.

R1:1.3450 – R2:1.3490 – R3:1.3530

S1:1.3410 – S2:1.3385 – S3:1.3350

USD/JPY

USD/JPY gained ground as Treasury yields continued to rebound from recent lows. Traders will stay focused on the dynamics of U.S. government debt markets in the upcoming trading sessions.

In case USD/JPY settles above the resistance at 135.10, it will move towards the next resistance level at 135.75. A successful test of this level will push USD/JPY towards the resistance at 136.50.

R1:135.10 – R2: 135.75 – R3:136.50

S1:134.50 – S2:134.00 – S3:133.50

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