U.S. Dollar Moves Higher Amid Rising Geopolitical Tensions: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/CAD

U.S. Dollar Moves Higher As Oil Gains 4%

U.S. Dollar Index gains ground as traders react to CB Consumer Confidence report and focus on rising oil prices.

CB Consumer Confidence declined from 93.8 (revised from 92.8) in April to 93.1 in May, compared to analyst forecast of 92.

Today, traders also had a chance to take a look at the Dallas Fed Manufacturing Index report. The report indicated that Dallas Fed Manufacturing Index improved from -2.3 in April to +0.4 in May, compared to analyst forecast of -1.

WTI oil climbed above the $94.00 level as traders focused on rising tensions in the Middle East. U.S. and Iranian forces exchanged strikes despite ceasefire.

U.S. Dollar Index settled above the support at 98.85 – 99.00 and is trying to settle above the 50 MA at 99.16. In case this attempt is successful, U.S. Dollar Index will head towards the nearest resistance level, which is located in the 99.70 – 99.85 range.

EUR/USD Moves Lower As Geopolitical Risks Increase

EUR/USD pulled back as traders reacted to rising oil prices. Demand for risk assets declined, which was bearish for the European currency.

Currently, EUR/USD is trying to settle below the 50 MA at 1.1628. In case EUR/USD manages to settle below the 50 MA, it will move towards the support at 1.1585 – 1.1600.

On the upside, a move above the 1.1650 level will push EUR/USD towards the nearest resistance level, which is located in the 1.1665 – 1.1680 range.

GBP/USD Retreats Amid Profit-Taking

GBP/USD pulled back from recent highs as traders rushed to take profits off the table amid rising geopolitical tensions.

GBP/USD failed to settle above the 1.3500 level and is trying to settle below the support at 1.3450 – 1.3465. In case this attempt is successful, GBP/USD will head towards the 50 MA at 1.3420. A move below the 50 MA will push GBP/USD towards the next support at 1.3335 – 1.3350.

USD/CAD Is Mostly Flat Amid Pullback In Precious Metals Markets

USD/CAD settled near the 1.3800 level as traders focused on the pullback in precious metals markets. Other commodity-related currencies have moved lower in today’s trading session.

In case USD/CAD settles above the 1.3800 level, it will head towards the resistance at 1.3860 – 1.3875. RSI is in the moderate territory, so there is plenty of room to gain upside momentum in the near term.

On the support side, the nearest support level for USD/CAD is located in the 1.3775 – 1.3790 range. A successful test of this level will push USD/CAD towards the next support at 1.3700 – 1.3715.

USD/JPY Tests New Highs

USD/JPY is moving higher despite the pullback in Treasury yields. The yield of 2-year Treasuries declined towards the 4.06% level, while the yield of 10-year Treasuries pulled back towards 4.50%.

Currently, USD/JPY is trying to settle above the 159.30 level. In case this attempt is successful, USD/JPY will move towards the psychologically important 160.00 level.

It should be noted that traders are cautious amid risks of interventions from the Bank of Japan. If USD/JPY manages to settle above the 160.00 level, it will head towards the next resistance at 161.50 – 162.00.

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