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U.S. Dollar Gains Ground As Traders Bet On Rebound After Fed Decision: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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The American currency moved away from yearly lows as traders reacted to Fed decision.
U.S. Dollar Index Tests Resistance At 96.35 – 96.50
U.S. Dollar Index gains some ground as traders stay focused on Powell’s comments and react to the Initial Jobless Claims report. The report indicated that 209,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 205,000.
If U.S. Dollar Index manages to settle above the 96.50 level, it will move towards the next resistance level at 97.10 – 97.25.
EUR/USD Retreats Amid Profit-Taking
EUR/USD pulls back as traders continue to take profits after the strong rally. In the EU, traders focused on the Euro Area Economic Sentiment report. The report showed that Euro Area Economic Sentiment increased from 97.2 in December to 99.4 in January, compared to analyst consensus of 97.
A successful test of the support at 1.1900 – 1.1915 will open the way to the test of the next support level, which is located in the 1.1835 – 1.1850 range.
GBP/USD Attempts To Settle Below 1.3800
GBP/USD is also moving lower as traders bet that Fed will keep rates unchanged in the upcoming months.
If GBP/USD manages to settle below the 1.3750 level, it will head towards the nearest support at 1.3710 – 1.3725.
USD/CAD Tests New Lows As Traders Ignore The Sell-Off In Precious Metals Markets
USD/CAD is moving lower despite the strong pullback in precious metals markets, which is driven by profit-taking. Other commodity-related currencies are losing ground in today’s trading session.
A move below the support at 1.3500 – 1.3515 will open the way to the test of the next support level at 1.3420 – 1.3435.
USD/JPY Tests The 153.00 Level
USD/JPY is losing some ground despite the weaker-than-expected Consumer Confidence report from Japan. The report showed that Consumer Confidence improved from 37.2 in December to 37.9 in January, compared to analyst forecast of 38.
In case USD/JPY settles below the 153.00 level, it will head towards the nearest support at 151.50 – 152.00.
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About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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