U.S. Dollar Moves Away From Multi-Month Lows: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground At The Start Of The Week

U.S. Dollar Index is moving higher as traders take some profits off the table after the strong pullback.

Today, traders had a chance to take a look at the Chicago Fed National Activity Index report. The report indicated that Chicago Fed National Activity declined from +0.06 in June to -0.08 in July, compared to analyst forecast of +0.1. The report did not have a material impact on market dynamics.

Currently, U.S. Dollar Index attempts to settle above the 99.00 level. In case this attempt is successful, U.S. Dollar Index will move towards the resistance level at 99.25 – 99.40. On the support side, a successful test of the support level at 98.60 – 98.75 will open the way to the test of the next support at 97.85 – 98.00.

EUR/USD Pulls Back As Traders Take Profits Near Multi-Month Highs

EUR/USD moved away from recent highs as traders waited for additional catalysts.

EUR/USD has recently made several attempts to settle above the resistance level at 1.1685 – 1.1700 but these attempts yieded no results. In case EUR/USD manages to settle above 1.1700, it will head towards the next resistance level, which is located in the 1.1775 – 1.1790 range.

On the support side, a move below the 1.1650 level will push EUR/USD towards the support at 1.1600 – 1.1615.

GBP/USD Remains Stuck Near 1.3650

GBP/USD remains stuck near resistance at 1.3635 – 1.3650 amid lack of strong catalysts at the start of the week. Oil prices pulled back by -1.5%, but this move did not provide additional support to the British pound.

If GBP/USD climbs above the 1.3650 level, it will head towards the resistance level at 1.3720 – 1.3735. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, GBP/USD needs to settle below the 1.3620 level to have a chance to gain downside momentum in the near term. In this case, GBP/USD will move towards the next support at 1.3550 – 1.3565.

USD/CAD Rebounds As Demand For Commodity-Related Currencies Falls

USD/CAD gained ground as demand for commodity-related currencies declined despite rising gold markets. The pullback in the oil markets has not provided support as traders remained worried about potential escalation in the Middle East, which could hurt global growth and reduce demand for commodities.

Currently, USD/CAD is trying to settle above the resistance level at 1.3825 – 1.3840. In case this attempt is successful, USD/CAD will get to the test of the 50 MA at 1.3855. A move above the 50 MA will push USD/CAD towards the next resistance level at 1.3900 – 1.3915.

USD/JPY Tests The 50 MA At 159.11

USD/JPY moved higher despite the pullback in Treasury yields. The yield of 2-year Treasuries settled near the 4.24% level, while the yield of 10-year Treasuries declined towards 4.69%.

If USD/JPY manages to settle above the 50 MA at 159.11, it will move towards the nearest resistance level, which is located in the 159.50 – 160.00 range. A successful test of this level will open the way to the test of the next resistance at 161.50 – 162.00.

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