U.S. Dollar Pulls Back Amid Worries About Fed Independence: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats As Traders Focus On Fed Independence

U.S. Dollar Index is losing ground as traders worry about Fed independence. Fed Chair Powell said that the central bank was served with DoJ subpoenas threatening criminal charges. According to Powell, this threat is an attempt to put pressure on Federal Reserve.

In case U.S. Dollar Index pulls back below the 50 MA at 98.59, it will head towards the nearest support level, which is located in the 98.00 – 98.15 range.

EUR/USD Tested the 1.1700 Level

EUR/USD is moving higher as traders react to recent developments in the U.S. Worries about Fed independence may put material pressure on the American currency.

If EUR/USD climbs above the 1.1700 level, it will head towards the nearest resistance at 1.1715 – 1.1730.

GBP/USD Rebounds As Traders React To News From The U.S.

GBP/USD attempts to settle above the resistance at 1.3475 – 1.3490 as traders focus on general weakness of the U.S. dollar.

In case this attempt is successful, GBP/USD will move towards the next resistance level at 1.3575 – 1.3590. RSI remains in the moderate territory, so there is plenty of room to gain additional momentum in the near term.

USD/CAD Moves Lower As Gold And Silver Test Historic Highs

USD/CAD pulled back as traders focused on the strong rally in precious metals markets. Gold and silver tested historic highs. Other commodity-related currencies have also moved higher in today’s trading session.

A move below the 1.3850 level will open the way to the test of the support level at 1.3815 – 1.3830.

USD/JPY Tests Key Resistance At 158.00 – 158.50

USD/JPY gains ground as traders focus on BoJ policy outlook and ignore Fed’s problems.

A successful test of the resistance at 158.00 – 158.50 will push USD/JPY towards the next resistance level at 161.50 – 162.00.

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