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

Key Insights

• EUR/USD tests resistance at 1.0910.
• GBP/USD rebounds after multi-day pullback. 
• USD/JPY continues its attempts to settle above the resistance at 133.75.

U.S. Dollar

U.S. Dollar Index is losing ground as traders take some profits off the table after the recent rebound. Treasury yields are moving higher, but this move does not provide any support to the American currency.

In case U.S. Dollar Index settles below the 102 level, it will head towards the next support at 101.50. On the upside, a move above 102.50 will push the U.S. Dollar Index towards the resistance at 102.80.

R1:102.50 – R2:102.80 – R3:103.00

S1:102.00 – S2:101.50 – S3:101.05

EUR/USD

EUR/USD gains ground after the release of the Euro Area Retail Sales report. The report indicated that Euro Area Retail Sales declined by 0.8% month-over-month in February, in line with the analyst consensus.

If EUR/USD settles above the 1.0910 level, it will head towards the next resistance at 1.0940. A successful test of the resistance at 1.0940 will open the way to the test of the resistance at 1.0970.

R1:1.0910 – R2:1.0940 – R3:1.0970

S1:1.0885 – S2:1.0850 – S3:1.0820

GBP/USD

GBP/USD rebounds after multi-day pullback as traders focus on general market sentiment. It remains to be seen whether this rebound will be sustainable as Treasury yields continue to move higher.

If GBP/USD climbs above 1.2430, it will move towards the resistance at 1.2460. On the support side, a move below the nearest support level at 1.2390 will push GBP/USD towards the next support at 1.2360.

R1:1.2430 – R2:1.2460 – R3:1.2500

S1:1.2390 – S2:1.2360 – S3:1.2325

USD/CAD

USD/CAD pulled back towards the support at 1.3480 as oil markets moved higher. The general weakness of the U.S. dollar served as an additional bearish catalyst for USD/CAD.

If USD/CAD settles below the 1.3480 level, it will head towards the next support at 1.3450. A move below 1.3450 will push USD/CAD towards the support at 1.3410.

R1:1.3520 – R2:1.3550 – R3:1.3580

S1:1.3480 – S2:1.3450 – S3:1.3410

USD/JPY

USD/JPY has recently made another attempt to settle above the resistance at 133.75 as traders focused on rising Treasury yields.

RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge. If USD/JPY manages to climb above the resistance at 133.75, it will head towards the next resistance level at 134.50.

R1:133.75 – R2:134.50 – R3:135.10

S1:133.00 – S2:132.20 – S3:131.85

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