EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Rebounds Ahead Of The Weekend

Key Insights

• EUR/USD pulled back towards the 1.0750 level.
• USD/CAD tested new lows as traders reacted to Canada’s job market data. 
• USD/JPY climbed back above the 139 level. 

U.S. Dollar

U.S. Dollar Index rebounds after yesterday’s pullback. The yield of 2-year Treasuries moved towards the 4.60% level, providing additional support to the American currency.

In case the U.S. Dollar Index settles above the 103.50 level, it will head towards the next resistance at 103.75. A successful test of this level will push the U.S. Dollar Index towards the resistance at 104.10.

R1:103.50 – R2:103.75 – R3:104.10

S1:103.20 – S2:103.00 – S3:102.70

EUR/USD

EUR/USD pulls back after yesterday’s rebound as traders focus on rising Treasury yields.

If EUR/USD moves below the 1.0750 level, it will head towards the support at 1.0730. A move below 1.0730 will open the way to the test of the next support level at 1.0700.

R1:1.0780 – R2:1.0800 – R3:1.0825

S1:1.0750 – S2:1.0800 – S3:1.0830

GBP/USD

GBP/USD tested new highs as the rebound continued. The market sentiment remains bullish, and GBP/USD is moving closer to the yearly highs.

If GBP/USD settles above 1.2580, it will head towards the resistance at 1.2600. A move above this level will push GBP/USD towards the next resistance at 1.2640.

R1:1.2580 – R2:1.2600 – R3:1.2640

S1:1.2540 – S2:1.2510 – S3:1.2485

USD/CAD

USD/CAD tested new lows as traders reacted to the job market data from Canada. Unemployment Rate increased from 5% in April to 5.2% in May, compared to analyst consensus of 5.1%. From a big picture point of view, the recent rate hike continues to provide support to the Canadian dollar.

A successful test of the 1.3335 level will push USD/CAD towards the next support at 1.3300. In case USD/CAD declines below 1.3300, it will move towards the 1.3275 level.

R1:1.3380 – R2:1.3410 – R3:1.3440

S1:1.3335 – S2:1.3300 – S3:1.3275

USD/JPY

USD/JPY rebounded as Treasury yields moved higher. USD/JPY remains ultra-sensitive to the dynamics of U.S. government bond markets due to the ultra-dovish policy of the BoJ.

A move above the 139.60 level will push USD/JPY towards the resistance at 140.50. In case USD/JPY climbs above 140.50, it will head towards the next resistance level at 141.60.

R1:139.60 – R2:140.50 – R3:141.60

S1:138.70 – S2:137.50 – S3:136.50

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