EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Rebounds From Yearly Lows

Key Insights

• EUR/USD is trying to climb above the 1.1250 level. 
• USD/CAD rebounds as oil markets pull back from multi-month highs. 
• USD/JPY gained ground as Treasury yields moved higher.

U.S. Dollar

U.S. Dollar Index is trying to rebound from yearly lows as traders react to the better-than-expected Michigan Consumer Sentiment report. Treasury yields are moving higher, providing support to the American currency.

In case U.S. Dollar Index settles back above the 100 level, it will move towards the resistance in the 101.00 – 101.15 range.

EUR/USD

EUR/USD moved above the 1.1200 level as traders bet that ECB will be more hawkish than Fed in the upcoming months.

Taking a look at the daily chart, EUR/USD needs to stay above the 1.1190 level to have a chance to gain additional upside momentum and move towards the next resistance level, which is located in the 1.1280 – 1.1310 range.

GBP/USD

GBP/USD faced resistance near 1.3150 and pulled back as traders focused on the dynamics of Treasury yields.

RSI remains in the overbought territory despite the pullback, so it remains to be seen whether GBP/USD will be able to climb above the resistance at 1.3150 – 1.3180 in the near term.

USD/CAD

USD/CAD rebounds from lows as oil markets pull back after a multi-day rally. The general strength of the U.S. dollar provided additional support to USD/CAD in today’s trading session.

Currently, USD/CAD is trying to settle above the resistance at 1.3180 – 1.3210. In case this attempt is successful, it will head towards the next resistance level, which is located at 1.3240 – 1.3265.

USD/JPY

USD/JPY moved higher as Treasury yields rebounded from recent lows. USD/JPY was oversold so traders used the rebound in Treasury yields as an excuse to increase their long positions in USD/JPY.

In case USD/JPY stays above the support at 138.50 – 138.80, it will move towards the nearest resistance level, which is located at 140.45 – 140.80.

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