U.S. Dollar Retreats As Trump Fires Fed’s Cook: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Under Pressure As Traders Focus On Fed Independence

U.S. Dollar Index is losing ground as traders react to President Trump’s decision to fire Fed’s Cook. Trump noted that he had “sufficient cause” to fire Cook due to mortgage fraud allegations.

The nearest support level for U.S. Dollar Index is located in the 98.00 – 98.20 range. A successful test of this level will push U.S. Dollar Index towards the next support at 97.10 – 97.30.

EUR/USD Attempts To Settle Above 1.1650

EUR/USD gains ground as traders focus on economic reports from the U.S. Durable Goods Orders declined by -2.8% month-over-month in July, compared to analyst forecast of -4%.

In case EUR/USD manages to settle above the 50 MA at 1.1658, it will head towards the next resistance level at 1.1685 – 1.1700.

GBP/USD Tests Resistance At 1.3485 – 1.3500

GBP/USD is trying to settle back above the 1.3500 level amid worries about Fed independence.

A move above 1.3500 will push GBP/USD towards the next resistance, which is located in the 1.3580 – 1.3600 range. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in the near term.

USD/CAD Is Under Pressure As Gold Tests New Highs

USD/CAD pulled back as demand for commodity-related currencies increased despite the pullback in the oil markets. Rising precious metals markets provided support to Canadian dollar.

If USD/CAD settles below 1.3815, it will head towards the nearest support level, which is located in the 1.3735 – 1.3750 range.

USD/JPY Retreats Amid Falling Treasury Yields

USD/JPY did not manage to settle above the 148.00 level as traders focused on falling Treasury yields. The yield of 2-year Treasuries pulled back below the 3.69% level, while the yield of 10-year Treasuries declined towards 4.27%.

The technical picture remains unchanged as USD/JPY is stuck near key resistance level at 147.50 – 148.00.

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