U.S. Dollar Gains Some Ground As Treasury Yields Test New Highs
U.S. Dollar Index moved away from session highs as oil prices pulled back amid reports indicating that Saudi Arabia restarted the key East-West pipeline.
Rising Treasury yields served as the key catalyst for the forex market in today’s trading session. The yield of 2-year Treasuries climbed above the 4.92% level, while the yield of 10-year Treasuries settled near 5.25%.
Traders also had a chance to take a look at the Dallas Fed Manufacturing Index report. The report indicated that Dallas Fed Manufacturing Index declined from 11.6 in August to 9.8 in September, compared to analyst forecast of 1.
In case U.S. Dollar Index stays above the 101.00 level, it will head towards the next resistance level, which is located in the 101.50 – 101.65 range. A successful test of this level will open the way to the test of the next resistance at 102.35 – 102.50.
EUR/USD Attempts To Rebound From Multi-Week Lows
EUR/USD is losing ground as traders focus on the sell-off in global bond markets. In the EU, Germany’s 10-year bond yield reached the highest level since 2009.
The nearest support level for EUR/USD is located in the 1.1335 – 1.1350 range. In case EUR/USD manages to settle below the 1.1335 level, it will head towards the next support, which is located in the 1.1250 – 1.1265 range.
EUR/USD Price Forecast
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See all EUR/USD forecastsGBP/USD Gains Ground As Healey Promises Fiscal Discipline
GBP/USD is moving higher as Chancellor John Healey promised fiscal discipline ahead of his debut budget, which would be released on October 28.
GBP/USD is heading towards the resistance level at 1.3285 – 1.3300. If GBP/USD climbs above the 1.3300 level, it will get to the test of the 50 MA at 1.3318. A move above the 50 MA will open the way to the test of the next resistance level at 1.3400 – 1.3415.
USD/CAD Tests New Highs
USD/CAD continues to move higher as traders react to the strong sell-off in precious metals markets. Gold is down by -3.6%, while silver pulled back by almost 5%.
From the technical point of view, USD/CAD climbed above the resistance level at 1.4135 – 1.4150 and is trying to settle above the 1.4170 level. In case this attempt is successful, USD/CAD will head towards the next resistance, which is located in the 1.4235 – 1.4250 range.
USD/JPY Tests The 50 MA At 157.28
USD/JPY is mostly flat as traders are evaluating their next moves amid global bond market sell-off. The magnitude of the sell-off has left traders wondering what to do next.
Currently, USD/JPY is trying to settle above the 50 MA at 157.28. In case this attempt is successful, USD/JPY will head towards the resistance level at 158.00 – 158.50. A move above the 158.50 level will open the way to the test of the next resistance at 160.00 – 160.50. It remains to be seen whether BoJ would be ready to intervene in case USD/JPY climbs above the psychologically important 160.00 level.
On the support side, a move below the 157.00 level will push USD/JPY towards the nearest support at 155.00 – 155.50.
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