EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Tested Weekly Lows

Key Insights

• EUR/USD tested yearly highs as Germany’s Consumer Confidence exceeded expectations. 
• USD/CAD pulled back as traders took profits after the recent rally. 
• USD/JPY received support near 133.00 and moved back above the 133.75 level. 

U.S. Dollar

U.S. Dollar Index found itself under pressure after the release of U.S. economic data, although it managed to rebound from session lows. Treasury yields have started to rebound after the recent pullback, but this move did not provide support to the American currency.

If the U.S. Dollar Index settles back above the 101.50 level, it will head towards the resistance at 102.00. On the support side, the U.S. Dollar Index needs to settle below the 101.05 level to continue the pullback.

R1:101.50 – R2:102.00 – R3:102.30

S1:101.05 – S2:100.80 – S3:100.50

EUR/USD

EUR/USD tested new highs as Germany’s Consumer Confidence improved from -29.3 in April to -25.7 in May, compared to analyst consensus of -27.9.

In case EUR/USD settles back above the resistance at 1.1050, it will move towards the next resistance level at 1.1075. A successful test of this level will open the way to the test of the resistance at 1.1100.

R1:1.1050 – R2:1.1075 – R3:1.1100

S1:1.1030 – S2:1.1000 – S3:1.0970

GBP/USD

GBP/USD has also moved higher in today’s trading session as traders focused on the general weakness of the U.S. dollar.

In case GBP/USD climbs above the 1.2500 level, it will head towards the resistance at 1.2525. On the support side, a move below 1.2460 will push GBP/USD towards the next support at 1.2430.

R1:1.2500 – R2:1.2525 – R3:1.2550

S1:1.2460 – S2:1.2430 – S3:1.2390

USD/CAD

USD/CAD pulled back as traders took some profits off the table after the recent rally. Oil markets declined, but this move did not have a material impact on USD/CAD dynamics.

In case USD/CAD settles below the support at 1.3610, it will head towards the next support at 1.3570. A successful test of the support at 1.3570 will open the way to the test of the support at 1.3550.

R1:1.3650 – R2:1.3675 – R3:1.3700

S1:1.3610 – S2:1.3570 – S3:1.3550

USD/JPY

USD/JPY made an attempt to get out of the recent trading range. However, rising Treasury yields provided sufficient support to USD/JPY. Traders remain focused on the upcoming BoJ decision, which will be released on Friday.

From the technical point of view, USD/JPY failed to settle below the support at 133.75. In case USD/JPY manages to climb above the nearest resistance at 134.50, it will have a good chance to gain upside momentum.

R1:134.50 – R2:135.10 – R3:135.50

S1:133.75 – S2:133.00 – S3:132.20

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