U.S. Dollar Retreats As Durable Goods Orders Miss Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests Support At 99.70 – 99.85

U.S. Dollar Index is losing ground as traders react to the disappointing Durable Goods Orders report. The report indicated that Durable Goods Orders decreased by -1.4% month-over-month in February, compared to analyst forecast of -0.5%.

Durable Goods Orders Ex Transp increased by +0.8%, while analysts expected that they would grow by +0.5%.

Traders also focus on the situation in the Middle East. President Trump warned that U.S. could wpe out Iran’s civilization in case the country did not agree to a deal. According to recent reports, Iran stopped negotiations after the new threat.

Currently, U.S. Dollar Index attempts to settle below the support at 99.70 – 99.85. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 98.85 – 99.00 range.

On the upside, a move above the 50 MA at 100.03 will open the way to the test of the resistance at 100.35 – 100.50.

EUR/USD Moves Higher As Durable Goods Orders Decline

EUR/USD gains ground as traders ignore rising oil prices and tensions in the Middle East. WTI oil climbed above the $115 level as traders focused on Trump’s recent comments on Iran. Brent oil settled near the $110 level. Interestingly, high oil prices did not put additional pressure on the European currency.

The nearest resistance level for EUR/USD is located in the 1.1585 – 1.1600 range. If EUR/USD climbs above the 1.1600 level, it will head towards the next resistance at 1.1665 – 1.1680.

GBP/USD Attempts To Settle Above 1.3250

GBP/USD gained some ground as traders focused on economic data from the U.S. There are no important economic reports scheduled to be released in the UK today, so traders will stay focused on geopolitical developments and general market sentiment.

If GBP/USD settles above the 50 MA at 1.3251, it will move towards the nearest resistance level, which is located in the 1.3315 – 1.3330 range. On the support side, a successful test of the support at 1.3215 – 1.3230 will push GBP/USD towards the next support level at 1.3135 – 1.3150.

USD/CAD Is Losing Ground Amid Rising Demand For Commodity-Related Currencies

USD/CAD attempts to settle below the support at 1.3885 – 1.3900 as demand for commodity-related currencies is rising despite the pullback in precious metals markets.

Traders also focus on the Ivey PMI report from Canada. The report indicated that Ivey PMI declined from 56.6 in February to 49.7 in March, compared to analyst forecast of 55.9.

In case USD/CAD manages to settle below the 1.3885 level, it will move towards the next support at 1.3800 – 1.3815.

USD/JPY Tests The 160.00 Level

USD/JPY made an attempt to settle above the psychologically important 160.00 level as traders focused on rising Treasury yields. The yield of 2-year Treasuries climbed above the 3.85% level, while the yield of 10-year Treasuries settled above 4.35%.

Traders also reacted to the Household Spending report from Japan. The report indicated that Household Spending increased by +1.5% month-over-month in February, compared to analyst forecast of +2.6%. On a year-over-year basis, Household Spending decreased by -1.8%.

In case USD/JPY climbs above the 160.00 level, it will move towards the resistance at 161.50 – 162.00. It remains to be seen whether BoJ will be ready to intervene in such scenario. A move above the 162.00 level will push USD/JPY towards levels that were last seen back in 1986.

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