U.S. Dollar Retreats As China Retaliates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Remains Under Pressure

U.S. Dollar Index pulled back as China retaliated with an 84% tariff on U.S. goods. Treasury yields continued to move higher at a robust pace as bond traders sold U.S. debt. The yield of 2-year Treasuries moved towards the 3.80% level, while the yield of 10-year Treasuries settled near 4.45%. It should be noted that rising yields did not provide any support to the American currency in today’s trading session.

From the technical point of view, U.S. Dollar Index found support near the 102.00 level and is trying to climb back above the 102.50 level. In case this attempt is successful, U.S. Dollar Index will move towards the nearest resistance level, which is located in the 103.20 – 103.40 range.

EUR/USD Tests Resistance At 1.1040 – 1.1060

EUR/USD moved higher as EU imposed tariffs on $23 billion of U.S. goods. Tariff news will remain the key driver for EUR/USD in the upcoming trading sessions.

In case EUR/USD pulls back below the 1.1000 level, it will head towards the nearest support level at 1.0920 – 1.0935.

GBP/USD Is Flat In Volatile Trading

GBP/USD was mostly flat in volatile trading. Currently, GBP/USD is trying to settle back below the support level at 1.2780 – 1.2800.

A move below the 1.2780 level will push GBP/USD towards the next support at 1.2680 – 1.2700.

USD/CAD Moves Lower As Gold Rallies

USD/CAD moved lower as traders focused on the strong rally in precious metals markets. Falling oil markets did not put pressure on the Canadian dollar today.

If USD/CAD stays below the 1.4180 level, it will move towards the next support at 1.4060 – 1.4080.

USD/JPY Tests New Lows

USD/JPY pulled back despite rising Treasury yields. Traders continue to sell USD/JPY amid trade wars.

A successful test of the support at 143.50 – 144.00 will push USD/JPY towards the next support at 141.50 – 142.00.

For a look at all of today’s economic events, check out our economic calendar.