U.S. Dollar Pulls Back As JOLTs Job Openings Decline: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Lower As JOLTs Job Openings Miss Estimates

U.S. Dollar Index is losing ground as traders react to the weaker-than-expected JOLTs Job Openings report. The report indicated that JOLTs Job Openings declined from 7.537 million (revised from 7.594 million) to 7.359 million, compared to analyst forecast of 7.4 million.

In case U.S. Dollar Index pulls back below the 99.85 level, it will head towards the nearest support, which is located in the 99.25 – 99.40 range. On the upside, a move above the 100.00 level will push U.S. Dollar Index towards the resistance at 100.50 – 100.65.

EUR/USD Tests The 1.1525 Level

EUR/USD gains ground as traders focus on U.S. job market data and react to U.S. Factory Orders report. The report showed that Factory Orders decreased by -0.3% month-over-month in June, compared to analyst consensus of +0.2%. The weaker-than-expected report put additional pressure on the American currency.

EUR/USD continues its attempts to settle above the resistance level at 1.1510 – 1.1525. In case EUR/USD manages to settle above the 1.1525 level, it will head towards the next resistance at 1.1600 – 1.1615.

GBP/USD Gains Ground As Treasury Yields Fall

GBP/USD is moving higher as traders focus on the strong pullback in Treasury yields. The yield of 2-year Treasuries declined below the 4.20% level, while the yield of 10-year Treasuries settled below 4.63%.

The nearest resistance level for GBP/USD is located in the 1.3465 – 1.3480 range. A successful test of this level will push GBP/USD towards the next resistance level at 1.3550 – 1.3565. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD Moves Higher As Rebound Continues

USD/CAD continues to rebound despite the better-than-expected Manufacturing PMI report from Canada. The report showed that Manufacturing PMI improved from 53.0 in June to 53.5 in July, while analysts expected that it would drop to 50.2. Numbers above 50 show expansion.

Currently, USD/CAD is trying to settle above the 50 MA at 1.4067. In case this attempt is successful, USD/CAD will move towards the nearest resistance level at 1.4125 – 1.4140.

On the support side, a successful test of the support at 1.4010 – 1.4025 will push USD/CAD towards the next support level at 1.3920 – 1.3935.

USD/JPY Tests Resistance At 157.50 – 158.00

USD/JPY is moving away from recent lows as the market stabilizes after major intervention. Treasury Secretary Scott Bessent said that a stable yen was important for the U.S. and for the entire region of Asia. He added that U.S. was in close contact with Japan.

From the technical point of view, USD/JPY attempts to settle above the resistance level at 157.50 – 158.00. If USD/JPY manages to settle above 158.00, it will head towards the next resistance level at 159.50 – 160.00. A move above the 160.00 level will push USD/JPY towards the 50 MA at 161.57. It remains to be seen whether Bank of Japan is ready for another intervention in the near term.

On the support side, USD/JPY needs to settle below the support at 154.50 – 155.00 to gain additional downside momentum in the near term. RSI has recently moved back into moderate territory, so there is enough room to gain momentum.

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