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U.S. Dollar Pulls Back As Traders Stay Bearish: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD tested the 1.1785 level despite weak Factory Orders data from Germany.
- USD/CAD gained ground as oil markets pulled back.
- USD/JPY moved lower as traders reacted to Household Spending data from Japan.
U.S. Dollar Index Remains Stuck Near Support At 96.70 – 96.90
U.S. Dollar Index is losing ground in quiet trading. Markets will stay quiet due to Independence Day.
From the technical point of view, U.S. Dollar Index has recently made an attempt to move away from yearly lows but faced resistance near the 50 MA. If U.S. Dollar Index climbs above the 50 MA at 97.15, it will move towards the next resistance level at 98.00 – 98.20.
EUR/USD Stays Close To Key Resistance Level
EUR/USD continues its attempts to settle above the resistance at 1.1785 – 1.1800. Today, traders focused on Factory Orders report from Germany. The report indicated that Factory Orders decreased by -1.4% month-over-month in May, compared to analyst forecast of -0.1%.
A successful test of the resistance at 1.1785 – 1.1800 will open the way to the test of the next resistance level at 1.1895 – 1.1910.
GBP/USD Consolidates After Recent Volatility
GBP/USD is mostly flat as traders react to the UK Construction PMI report, which showed that Construction PMI increased from 47.9 in May to 48.8 in June. The report exceeded analyst consensus of 48.4.
In case GBP/USD manages to settle back above the 50 MA at 1.3684, it will move towards the resistance level at 1.3730 – 1.3750.
USD/CAD Rebounds Amid Falling Demand For Commodity-Related Currencies
USD/CAD moved away from recent lows as traders reacted to the pullback in the oil markets.
If USD/CAD settles above the 1.3600 level, it will move towards the resistance level at 1.3650 – 1.3665.
USD/JPY Retreats As Japan’s Household Spending Beats Estimates
USD/JPY pulled back as traders focused on the better-than-expected Household Spending report from Japan. The report showed that Household Spending increased by +4.6%, compared to analyst forecast of +0.4%.
A move below the support at 143.50 – 144.00 will push USD/JPY towards the next support level at 140.00 – 140.50.
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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