U.S. Dollar Retreats As Traders Bet On Dovish Fed: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Under Strong Pressure

U.S. Dollar Index is losing ground as traders bet on dovish Fed. U.S. President Trump continues to put pressure on Powell, although Treasury Secretary Scott Bessent has recently noted that he saw no reason for Powell to step down.

U.S. Dollar Index settled below the previous support level at 98.00 – 98.20 and is trying to settle below the 97.50 level. In case this attempt is successful, it will head towards the next support, which is located in the 96.70 – 96.90 range.

EUR/USD Tests New Highs

EUR/USD gained ground as traders focused on Fed policy outlook. RSI has recently moved into the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge.

A move above the 1.1750 level will open the way to the test of the next resistance level at 1.1815 – 1.1830.

GBP/USD Tests Resistance At 1.3500 – 1.3520

GBP/USD is trying to settle above the resistance level at 1.3500 – 1.3520 as traders focus on falling Treasury yields. The yield of 2-year Treasuries declined towards the 3.83% level, while the yield of 10-year Treasuries settled below 4.35%.

If GBP/USD settles above 1.3520, it will head towards the next resistance, which is located in the 1.3630 – 1.3650 range.

USD/CAD Retreats As Gold Tests New Highs

USD/CAD moved lower as demand for commodity-related currencies increased. Gold and silver markets tested new highs, which was bullish for the Canadian dollar.

In case USD/CAD declines below the 1.3600 level, it will head towards the support level at 1.3550 – 1.3565.

USD/JPY Pulls Back As Treasury Yields Move Lower

USD/JPY is losing ground as traders focus on general weakness of the American currency.

If USD/JPY stays below the support at 147.50 – 148.00, it will head towards the next support at 143.50 – 144.00.

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