EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Tests New Highs After Strong Jobs Data

Key Insights

• EUR/USD pulled back below the 1.0950 level as traders reacted to the ADP Employment Change report from the U.S. 
• GBP/USD made an attempt to settle below the 1.2700 level. 
• USD/CAD rebounded towards 1.3350 as traders focused on the sell-off in the oil markets. 

U.S. Dollar

U.S. Dollar Index tested new highs as traders reacted to the ADP Employment Change report, which showed that private businesses added 324,000 jobs in July. The report has easily exceeded analyst expectations.

U.S. Dollar Index settled above the 102.15 level and is moving towards the next resistance in the 103.40 – 103.65 range. RSI remains in the moderate territory, which is bullish for the U.S. Dollar Index.

EUR/USD

EUR/USD is trying to settle below the support at 1.0950 – 1.0975 as traders focus on rising Treasury yields.

In case EUR/USD manages to settle below 1.0950, it will move towards the next support at 1.0835 – 1.0850.

GBP/USD

GBP/USD tested new lows as the pullback continued. The general strength of the U.S. dollar remains the key bearish catalyst for GBP/USD.

If GBP/USD settles below the 1.2725 level, it will move towards the support in the 1.2590 – 1.2620 range.

USD/CAD

USD/CAD gains ground as oil markets pull back after the release of the EIA report.

The nearest resistance for USD/CAD is located in the 1.3360 – 1.3380 range. If USD/CAD climbs above 1.3380, it will head towards the next resistance at 1.3430 – 1.3450.

USD/JPY

USD/JPY is mostly flat as traders take some profits off the table after the strong rebound from recent lows. Treasury yields continue to move higher, so USD/JPY has a good chance to gain additional upside momentum in the upcoming trading sessions.

If USD/JPY manages to climb above the recent highs near the 143.50 level, it will move towards the resistance at 144.65 – 145.00.

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