U.S. Dollar Pulls Back From Multi-Week Highs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats Despite Rising Geopolitical Tensions

U.S. Dollar Index is losing some ground as traders take some profits off the table near multi-week highs. Traders also stay focused on recent developments in the Middle East.

Iran and Israel attacked each other but agreed to halt attacks after President Trump intervened. WTI oil is up by just 1% as prices have already pulled back from session highs. Interestingly, the clash between Iran and Israel did not raise demand for the American currency.

In case U.S. Dollar Index stays above the resistance at 99.70 – 99.85, it will head towards the next resistance level, which is located in the 100.50 – 100.65 range. On the support side, a move below the 99.70 level will push U.S. Dollar Index towards the 50 MA at 99.33.

EUR/USD Moves Higher As Traders Buy The Dip

EUR/USD attempts to rebound despite the weaker-than-expected Factory Orders report from Germany. The report indicated that Factory Orders decreased by -3.8% month-over-month in April, compared to analyst forecast of -1.2%.

Currently, EUR/USD is trying to settle below the support at 1.1500 – 1.1515. In case this attempt is successful, EUR/USD will head towards the next support level, which is located in the 1.1415 – 1.1430 range.

GBP/USD Tests Support At 1.3335 – 1.3350

GBP/USD continues its attempts to settle below the support level at 1.3335 – 1.3350 as traders focus on geopolitical developments and monitor dynamics of oil markets. There are no important economic reports scheduled to be released in the UK today so traders will stay focused on general market sentiment.

If GBP/USD manages to settle below the 1.3335 level, it will head towards the support at 1.3215 – 1.3230. On the upside, a move above 1.3370 will push GBP/USD towards the 50 MA at 1.3426. In case GBP/USD manages to settle above 1.3426, it will get to the test of the resistance level at 1.3450 – 1.3465.

USD/CAD Moves Higher As Rally Continues

USD/CAD gains ground as traders focus on dynamics of precious metals markets. Gold and silver attempt to rebound, while platinum and palladium are under pressure. Other commodity-related currencies are moving higher in today’s trading session.

From the technical point of view, USD/CAD attempts to settle above the resistance at 1.3950 – 1.3965. In case this attempt is successful, USD/CAD will move towards the next resistance level, which is located in the 1.4035 – 1.4050 range. RSI is close to the overbought territory, but there is enough room to gain additional momentum in case the right catalysts emerge.

USD/JPY Is Mostly Flat As Traders React To Japan’s GDP Growth Rate Report

USD/JPY remains stuck near the 160.00 level as traders focus on the GDP report from Japan. GDP Growth Rate was +0.5% in the first quarter, compared to analyst consensus of +0.3%.

Treasury yields gained some ground, but this move did not provide support to USD/JPY. It looks that traders remain worried about potential interventions from the Bank of Japan.

If USD/JPY stays above the 160.00 level, it will head towards the resistance level at 161.50 – 162.00. On the support side, a move below the 50 MA at 159.74 will push USD/JPY towards the next support level at 158.00 – 158.50.

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