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U.S. Dollar Moves Higher As Treasury Yields Rise: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD settled near the 1.1650 level amid lack of strong catalysts.
- USD/CAD was mostly flat as traders reacted to the Unemployment Rate report from Canada.
- USD/JPY gained ground as traders focused on rising Treasury yields.
U.S. Dollar Index Attempts To Rebound
U.S. Dollar Index gained some ground ahead of the weekend. There are no important economic reports scheduled to be released today, so traders will stay focused on general market sentiment.
In case U.S. Dollar Index manages to climb above the 98.50 level, it will move towards the 50 MA at 98.90. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.
EUR/USD Pulled Back From Recent Highs
EUR/USD did not manage to climb above the resistance at 1.1685 – 1.1700 and settled near the 1.1650 level.
In case EUR/USD pulls back below 1.1630, it will move towards the nearest support level, which is located in the 1.1575 – 1.1590 range.
GBP/USD Tests The 1.3450 Level
GBP/USD is mostly flat as traders wait for additional catalysts. From the technical point of view, GBP/USD continues its attempts to settle above the 1.3450 level.
In case GBP/USD settles above 1.3450, it will move towards the resistance at 1.3485 – 1.3500. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.
USD/CAD Is Flat As Traders Focus On Job Market Data From Canada
USD/CAD remains stuck near the support level at 1.3735 – 1.3750 as traders react to Unemployment Rate report from Canada. The report indicated that Unemployment Rate remained unchanged at 6.9% in July, compared to analyst forecast of 7%. Other commodity-related currencies are swinging between gains and losses in today’s trading session.
In case USD/CAD declines below the 1.3735 level, it will head towards the next support, which is located in the 1.3585 – 1.3600 range.
USD/JPY Moves Higher Amid Rising Treasury Yields
USD/JPY attempts to settle above the resistance at 147.50 – 148.00 as Treasury yields rise. The yield of 2-year Treasuries climbed above the 3.75% level, while the yield of 10-year Treasuries moved towards the 4.30% level.
A successful test of the resistance at 147.50 – 148.00 will push USD/JPY towards the next resistance at 151.00 – 151.50.
For a look at all of today’s economic events, check out our economic calendar.
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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