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EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Rebounds Amid Rising Demand For Safe-Haven Assets

By:
Vladimir Zernov

U.S. dollar is moving higher as traders are focused on recession risks.

U.S. Dollar

In this article:

Key Insights

  • EUR/USD pulled back as traders took some profits off the table near yearly highs. 
  • USD/CAD gained more ground as oil markets pulled back. 
  • USD/JPY remained stuck in the 133.75 – 135.10 range.

U.S. Dollar

DXY
DXY 250423 Daily Chart

U.S. Dollar Index rebounded towards the 101.80 level as demand for safe-haven assets increased amid recession worries. CB Consumer Confidence declined from 104 in March to 101.3 in April, which served as an additional bullish catalyst for the American currency.

If the U.S. Dollar Index gets above the nearest resistance at 102.00, it will head towards the 102.30 level. On the support side, a move below the 101.50 level will push the U.S. Dollar Index towards the support at 101.05.

R1:102.00 – R2:102.30 – R3:102.60

S1:101.50 – S2:101.05 – S3:100.80

EUR/USD

EUR/USD
EUR/USD 250423 Daily Chart

EUR/USD pulled back as traders took profits off the table near yearly highs. The yield of 10-year Treasuries declined towards the 3.40% level, but this move did not provide any support to EUR/USD as traders focused on rising demand for safe-haven assets.

If EUR/USD settles below the support at 1.0970, it will move towards the next support level at 1.0940. A successful test of this level will open the way to the test of the support at 1.0915.

R1:1.1000 – R2:1.1030 – R3:1.1050

S1:1.0970 – S2:1.0940 – S3:1.0915

GBP/USD

GBP/USD
GBP/USD 250423 Daily Chart

GBP/USD declined towards the 1.2400 level as traders focused on the rebound of the U.S. dollar. Recession worries put material pressure on the British pound.

In case GBP/USD settles below the 1.2390 level, it will head towards the next support at 1.2360. On the upside, a move above 1.2430 will push GBP/USD towards the resistance at 1.2460.

R1:1.2430 – R2:1.2460 – R3:1.2500

S1:1.2390 – S2:1.2360 – S3:1.2335

USD/CAD

USD/CAD
USD/CAD 250423 Daily Chart

USD/CAD gained more ground as oil markets declined by more than 2%. Other commodity-related currencies have also found themselves under material pressure in today’s trading session.

If USD/CAD settles above 1.3610, it will head towards the next resistance at 1.3650. A move above this level will push USD/CAD towards the resistance at 1.3675.

R1:1.3610 – R2:1.3650 – R3:1.3675

S1:1.3570 – S2:1.3550 – S3:1.3530

USD/JPY

USD/JPY
USD/JPY 250423 Daily Chart

USD/JPY pulled back as Treasury yields declined. However, this pullback was not strong as traders believe that the BoJ will maintain its ultra-dovish policy at the next meeting on Friday.

In case USD/JPY gets below the support at 133.75, it will head towards the next support level at 133. A successful test of this level will push USD/JPY towards the support at 132.20.

R1:134.50 – R2:135.10 – R3:135.50

S1:133.75 – S2:133.00 – S3:132.20

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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