U.S. Dollar Index gains ground as U.S. and China will lower tariffs to negotiate a trade deal. U.S. tariffs for most Chinese goods will be reduced to 30%, while Chinese tariffs will drop to 10%.
Currently, U.S. Dollar Index is trying to settle above the resistance at 101.40 – 101.60. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located in the 103.30 – 103.50 range.
EUR/USD is under pressure as traders focus on the U.S. – China agreement to lower tariffs for 90 days.
If EUR/USD settles below the support level at 1.1110 – 1.1130, it will move towards the next support level at 1.0900 – 1.0920. It should be noted that RSI is in the oversold territory, so the risks of a rebound are increasing.
GBP/USD pulled back as traders focused on general strength of the American currency.
In case GBP/USD stays below the 1.3200 level, it will move towards the next support level at 1.3000 – 1.3020.
USD/CAD tests new highs as traders react to the strong pullback in precious metals markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.
A move above the 1.4000 level will open the way to the test of the next resistance level at 1.4060 – 1.4080.
USD/JPY rallied as traders focused on rising Treasury yields. The yield of 2-year Treasuries climbed towards the 4.00% level, while the yield of 10-year Treasuries settled near 4.45%.
A successful test of the resistance at 147.50 – 148.00 will push USD/JPY towards the next resistance level at 151.50 – 152.00.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.