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U.S. Dollar Pulls Back From Session Highs As ISM Services PMI Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD is trying to climb above the 1.1590 level as traders focus on U.S. PMI data.
- GBP/USD continues its attempts to settle above 1.3300.
- USD/JPY gained some ground amid rising Treasury yields.
U.S. Dollar Retreats From Recent Highs
U.S. Dollar Index is losing some ground as traders react to ISM Services PMI report. The report indicated that ISM Services PMI decreased from 50.8 in June to 50.1 in July, compared to analyst forecast of 51.5.
In case U.S. Dollar Index stays below the 50 MA at 98.82, it will move towards the nearest support level, which is located in the 98.00 – 98.20 range.
EUR/USD Attempts To Climb Above The 1.1590 Level
EUR/USD tests resistance at 1.1575 – 1.1590 as traders focus on the weaker-than-expected ISM Services PMI data from the U.S.
In case this test is successful, EUR/USD will move towards the next resistance level at 1.1685 – 1.1700.
GBP/USD Gains Ground As Traders Focus On ISM Services PMI Report
GBP/USD continues its attempts to settle above the 1.3300 level. There are no important economic reports scheduled to be released in the UK today, so traders will stay focused on general market sentiment.
RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge. If GBP/USD settles above 1.3300, it will move towards the resistance level at 1.3370 – 1.3390.
USD/CAD Moved Back Below 1.3800
USD/CAD is mostly flat as traders wait for additional catalysts. Other commodity-related currencies are swinging between gains and losses in today’s trading session.
The nearest support level for USD/CAD is located in the 1.3735 – 1.3750 range. A move below the 1.3750 level will push USD/CAD towards the support at 1.3585 – 1.3600.
USD/JPY Tests Resistance At 147.50 – 148.00
USD/JPY gained ground as traders focused on rising Treasury yields. The yield of 2-year Treasuries climbed above the 3.70% level, while the yield of 10-year Treasuries settled above 4.20%.
In case USD/JPY climbs above the resistance at 147.50 – 148.00, it will move towards the next resistance at 151.00 – 151.50.
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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