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EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Pulls Back On Profit-Taking
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Traders are cautious ahead of tomorrow's Fed Interest Rate Decision.
Key Insights
- EUR/USD tested new lows as traders reacted to the disappointing business climate data from Germany.
- GBP/USD settled back above the 1.2850 level.
- USD/JPY pulled back as traders prepared for tomorrow’s Fed decision.
U.S. Dollar
U.S. Dollar Index pulls back as traders react to the better-than-expected CB Consumer Confidence report. It looks that traders decided to take some profits off the table ahead of tomorrow’s Fed meeting.
The current pullback is not strong, and traders will likely stay cautious ahead of the Fed decision.
EUR/USD
EUR/USD tested new lows as traders reacted to the Ifo Business Climate report from Germany. The report showed that Business Climate declined from 88.6 in June to 87.3 in July, compared to analyst consensus of 88.
EUR/USD settled below the previous support level at 1.1070 – 1.1095 and is trying to gain additional downside momentum. However, RSI is in the oversold territory, so the risks of a rebound are rising.
GBP/USD
GBP/USD found support in the 1.2820 – 1.2850 range and is moving higher. Today, traders focused on CBI Business Optimism Index report, which showed that Business Optimism improved from -2 to +6, compared to analyst consensus of +5.
From the technical point of view, GBP/USD looks ready to gain additional upside momentum. A move above the 1.2900 level will open the way to the test of the resistance at 1.2970 – 1.3000.
USD/CAD
USD/CAD is swinging between gains and losses as traders wait for tomorrow’s Fed decision.
USD/CAD remains stuck in a range between the support at 1.3090 and the resistance at 1.3240. Most likely, it will need significant catalysts to move out of this trading range.
USD/JPY
USD/JPY pulls back as bulls are not ready to increase their long positions ahead of the Fed Interest Rate Decision.
USD/JPY is trading between the support at 140.80 and the resistance at 141.85. Traders should expect that USD/JPY will gain additional momentum when it moves out of this range.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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