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U.S. Dollar Pulls Back Ahead Of U.S. – China Talks: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:
Vladimir Zernov
Published: May 9, 2025, 16:54 GMT+00:00

Key Points:

  • EUR/USD moved above the 1.1250 level as traders focused on the upcoming trade talks between the U.S. and China.
  • USD/CAD gained ground as Canada's Unemployment Rate exceeded estimates.
  • USD/JPY pulled back towards the 145.00 level.
EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests Support At 100.20 – 100.40

DXY
DXY 090525 4h Chart

U.S. Dollar Index  pulled back as traders took some profits off the table and focused on the upcoming U.S. – China trade talks. President Trump said that an 80% tariff on China was a good idea, but it was not clear whether U.S. and China would reach an agreement over the weekend.

In case U.S. Dollar Index settles below the support level at 100.20 – 100.40, it will head towards the 50 MA at 99.81.

EUR/USD Gains Ground As Traders Focus On U.S. – China Talks

EUR/USD
EUR/USD 090525 4h Chart

EUR/USD is moving higher as traders wait for the results of U.S. – China talks. Currently, EUR/USD is trying to settle above the resistance at 1.1275 – 1.1290.

In case this attempt is successful, EUR/USD will head towards the next resistance level, which is located in the 1.1450 – 1.1470.

GBP/USD Tests Resistance At 1.3300 – 1.3320

GBP/USD
GBP/USD 090525 4h Chart

GBP/USD tests resistance at 1.3300 – 1.3320 as traders focus on general weakness of the U.S. dollar.

If GBP/USD climbs above the 1.3320 level, it will move towards the resistance at 1.3400 – 1.3420.

USD/CAD Tests New Highs

USD/CAD
USD/CAD 090525 4h Chart

USD/CAD is moving higher as traders react to the Unemployment Rate report from Canada. The report indicated that Unemployment Rate increased from 6.7% in March to 6.9% in April, compared to analyst forecast of 6.8%.

If USD/CAD settles above the 1.3950 level, it will head towards the next resistance level at 1.4060 – 1.4080. RSI has recently moved into the overbought territory, but there is enough room to gain additional momentum in the near term.

USD/JPY Pulls Back Ahead Of The Weekend

USD/JPY
USD/JPY 090525 4h Chart

USD/JPY pulled back after an unsuccessful attempt to settle above the 146.00 level.

In case USD/JPY settles below the 145.00 level, it will head towards the nearest support, which is located in the 143.50 – 144.00 range.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

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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