EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Remains Under Pressure Despite Rising Treasury Yields

Key Insights

• U.S. Dollar Index tries to settle below the support at 101.05.
• EUR/USD tested resistance at 1.1050 but failed to develop sufficient upside momentum. 
• USD/CAD tested multi-week lows as oil markets continued to rebound. 

U.S. Dollar

U.S. Dollar Index continues its attempts to settle below the support at 101.05 despite rising Treasury yields. Traders bet that Fed will be forced to start cutting rates in the second half of the year.

A move below the 101.05 level will push the U.S. Dollar Index towards the support at 100.80. On the upside, a move above 101.50 will open the way to the test of the resistance at 102.00.

R1:101.50 – R2:102.00 – R3:102.30

S1:101.05 – S2:100.80 – S3:100.50

EUR/USD

EUR/USD tested the 1.1050 level but lost momentum and pulled back. Today, EUR/USD traders focused on Germany’s Industrial Production report, which showed that Industrial Production declined by 3.4% month-over-month in March.

In case EUR/USD settles back above 1.1030, it will move towards the 1.1050 level. On the support side, a move below 1.1000 will push EUR/USD towards the support at 1.0970.

R1:1.1030 – R2:1.1050 – R3:1.1075

S1:1.1000 – S2:1.0970 – S3:1.0940

GBP/USD

GBP/USD continues to move higher as traders focus on Fed’s policy outlook. There are no important economic reports scheduled to be released in the UK today, so GBP/USD dynamics will depend on general market sentiment.

In case GBP/USD manages to settle above the 1.2650 level, it will head towards the resistance at 1.2690. A successful test of this level will push GBP/USD towards the 1.2730 level.

R1:1.2650 – R2:1.2690 – R3:1.2730

S1:1.2600 – S2:1.2580 – S3:1.2550

USD/CAD

USD/CAD remains under pressure as oil markets rebound. Currently, WTI oil is trying to settle above the $73 level, which is bullish for the Canadian dollar and other commodity-related currencies.

If USD/CAD settles below the support at 1.3350, it will move towards the next support level at 1.3315. A successful test of the support at 1.3315 will push USD/CAD towards the support at 1.3300.

R1:1.3385 – R2:1.3410 – R3:1.3450

S1:1.3350 – S2:1.3315 – S3:1.3300

USD/JPY

USD/JPY made an attempt to settle above the 135.10 level as Treasury yields moved higher. However, trading is calm today, and it looks that traders are not ready for big moves at the start of the week.

A move above 135.10 will push USD/JPY towards the resistance at 135.75. If USD/JPY climbs above this level, it will head towards the next resistance at 136.50.

R1:135.10 – R2:135.75 – R3:136.50

S1:134.50 – S2:134.00 – S3:133.50

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