U.S. Dollar Rallies As Traders Focus On U.S. – EU Trade Deal: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests Weekly Highs

U.S. Dollar Index rallied as U.S. reached a trade deal with the EU. The European Union will face a 15% tariff on most goods and reduce tariffs on some U.S. products to 0%.

U.S. Dollar Index moved above the resistance at 98.00 – 98.20 and is trying to settle above the 98.50 level. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance at 99.20 – 99.40.

EUR/USD Is Under Strong Pressure

EUR/USD is under pressure as traders react to the U.S. – EU trade deal. While EU leaders tried to defend the deal, the market sees it as a big win for the United States and a loss for the European Union.

From the technical point of view, EUR/USD settled below the support at 1.1675 – 1.1690 and is heading towards the next support level at 1.1575 – 1.1590.

GBP/USD Tests Support At 1.3370 – 1.3390

GBP/USD is losing ground as traders focus on general strength of the American currency.

A successful test of the support at 1.3370 – 1.3390 will push GBP/USD towards the next support level, which is located in the 1.3250 – 1.3270 range.

USD/CAD Moves Higher Amid Falling Demand For Commodity-Related Currencies

USD/CAD gained ground despite the rally in the oil markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above the 1.3750 level will open the way to the test of the next resistance level at 1.3845 – 1.3860.

USD/JPY Attempts To Settle Above 148.50

USD/JPY is moving higher amid rising Treasury yields. The yield of 10-year Treasuries settled above the 4.40% level, which was bullish for the American currency.

In case USD/JPY stays above the resistance at 147.50 – 148.00, it will head towards the next resistance at 151.00 – 151.50.

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