U.S. Dollar Rebounds As Treasury Yields Rise: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground At The Start Of The Week

U.S. Dollar Index gains ground despite the weaker-than-expected NAHB Housing Market Index report. The report indicated that NAHB Housing Market Index declined from 33 in July to 32 in August, compared to analyst forecast of 34.

In case U.S. Dollar Index manages to settle above the resistance at 98.00 – 98.20, it will head towards the next resistance, which is located in the 99.20 – 99.40 range.

EUR/USD Tests The 50 MA At 1.1664

EUR/USD failed to settle above the resistance at 1.1685 – 1.1700 and pulled back towards the 50 MA at 1.1664.

If EUR/USD declines below the 50 MA, it will move towards the support level, which is located in the 1.1575 – 1.1590 range.

GBP/USD Is Heading Towards The 1.3500 Level

GBP/USD pulls back as traders focus on general strength of the American currency.

The nearest support level for GBP/USD is located in the 1.3485 – 1.3500 range. A move below the 1.3485 level will push GBP/USD towards the next support level at 1.3400 – 1.3415.

USD/CAD Tested New Highs

USD/CAD tested new highs but lost momentum and pulled back towards the 1.3800 level.

If USD/CAD manages to settle above 1.3820, it will head towards the nearest resistance at 1.3845 – 1.3860. A successful test of this level will push USD/CAD towards the next resistance at 1.3925 – 1.3940.

USD/JPY Gains Ground Amid Rising Treasury Yields

USD/JPY is moving higher as traders focus on rising Treasury yields. The yield of 2-year Treasuries climbed above the 3.75% level, while the yield of 10-year Treasuries moved above 4.33%.

RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term. In case USD/JPY settles above the resistance at 147.50 – 148.00, it will head towards the next resistance at 151.00 – 151.50.

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