U.S. Dollar Moves Towards Yearly Lows: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Under Pressure

U.S. Dollar Index pulled back despite strong Retail Sales data. The report indicated that Retail Sales increased by +1.4% month-over-month in March, compared to analyst forecast of +1.3%. Traders ignored the report and focused on U.S. – China trade war.

In case U.S. Dollar Index settles below the 99.50 level, it will head towards the nearest support level, which is located in the 98.80 – 99.00 range.

EUR/USD Climbed Back Above The 1.1350 Level

EUR/USD rebounded after the recent pullback as traders focused on Trump’s decision to curb chip exports to China.

If EUR/USD climbs above the 1.1400 level, it will move towards the next resistance level, which is located in the 1.1450 – 1.1470 range.

GBP/USD Faced Resistance Near 1.3300

GBP/USD pulled back from recent highs as traders reacted to inflation data from the UK. Inflation Rate decreased from 2.8% in February to 2.6% in March, compared to analyst forecast of 2.7%. Core Inflation Rate declined from 3.5% to 3.4%, in line with analyst estimates.

The nearest support level for GBP/USD is located in the 1.3180 – 1.3200 range. A move below the 1.3180 level will push GBP/USD towards the next support at 1.3080 – 1.3100.

USD/CAD Is Losing Ground As Gold Markets Rally

USD/CAD is losing ground as traders focus on the strong rally in gold markets. Spot gold managed to settle above the $3300 level.

If USD/CAD stays below the 1.3900 level, it will head towards the nearest support at 1.3800 – 1.3820.

USD/JPY Pulls Back As Treasury Yields Fall

USD/JPY moved lower amid falling Treasury yields. The yield of 2-year Treasuries pulled back below the 3.80% level, while the yield of 10-year Treasuries settled near 4.30%.

From the technical point of view, USD/JPY needs to settle below the 141.50 level to gain additional downside momentum in the near term.

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