EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Rebounds Amid Profit-Taking

Key Insights

• EUR/USD pulled back below the 1.1000 level. 
• GBP/USD declined after an unsuccessful attempt to settle above 1.2500.
• USD/JPY is trying to settle above the key resistance at 133.75.

U.S. Dollar

U.S. Dollar Index rebounded after the release of U.S. economic reports. Retail Sales fell 1% month-over-month in April, while Michigan Consumer Sentiment improved from 62 in March to 63.5 in April.

U.S. Dollar Index moved above the 101.50 level and is heading towards the resistance at 102.00. A successful test of this level will open the way to the test of the resistance at 102.30.

R1:102.00 – R2:102.30 – R3:102.60

S1:101.50 – S2:101.05 – S3:100.80

EUR/USD

EUR/USD pulled back as traders took profits after the recent rally. U.S. ecoomic reports served as an additional bearish catalyst for EUR/USD.

In case EUR/USD settles below the support at 1.0970, it will move towards the next support level at 1.0940. On the upside, EUR/USD needs to climb back above the 1.1000 level to have a chance to gain upside momentum in the near term.

R1:1.1000 – R2:1.1030 – R3:1.1050

S1:1.0970 – S2:1.0940 – S3:1.0910

GBP/USD

GBP/USD gained strong downside momentum after an unsuccessful attempt to settle above the 1.2500 level. Treasury yields are moving higher, which is bearish for GBP/USD.

If GBP/USD declines below the support at 1.2390, it will move towards the next support level at 1.2360. A move below 1.2360 will push GBP/USD towards the support at 1.2330.

R1:1.2430 – R2:1.2460 – R3:1.2500

S1:1.2390 – S2:1.2360 – S3:1.2330

USD/CAD

USD/CAD rebounded from multi-month lows as traders took profits after the recent pullback.

The nearest resistance level for USD/CAD is located at 1.3380. In case USD/CAD climbs above this level, it will head towards the next resistance at 1.3410. On the support side, a move below 1.3360 will push USD/CAD towards the support at 1.3325.

R1:1.3380 – R2:1.3410 – R3:1.3450

S1:1.3360 – S2:1.3325 – S3:1.3300

USD/JPY

USD/JPY is testing the important resistance at 133.75 as traders remain focused on the dynamics of Treasury yields. In case Treasury yields continue to rebound, USD/JPY will get more support.

A move above the 133.75 level will open the way to the test of the resistance at 134.50. If USD/JPY climbs above 134.50, it will head towards the 135.10 level.

R1:133.75 – R2:134.50 – R3:135.10

S1:133.00 – S2:132.20 – S3:131.85

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