U.S. Dollar Starts The Week On A Strong Note: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs

U.S. Dollar Index gains ground as traders stay bullish at the start of the week. Treasury yields continue to move higher, providing additional support to the American currency.

If U.S. Dollar Index settles above the 110.00 level, it will move towards the nearest resistance level, which is located in the 111.10 – 111.30 range.

EUR/USD Retreats As Energy Prices Rise

EUR/USD remains under strong pressure as traders stay focused on the weakness of the European economy and rising energy prices.

If EUR/USD settles below the 1.0200 level, it will head towards the next support level at 1.0100 – 1.0115. It should be noted that RSI is in the oversold territory, so the risks of a rebound are increasing.

GBP/USD Tests New Lows As Pullback Continues

GBP/USD tested new lows but received support near the 1.2100 level. The yields of UK government bonds stay close to their recent highs, which shows that investors remain nervous.

In case GBP/USD manages to settle back above the 1.2150 level, it will move towards the nearest resistance level, which is located in the 1.2200 – 1.2215 range.

USD/CAD Is Mostly Flat In Choppy Trading

USD/CAD is mostly flat as traders evaluate the moves in commodity markets. Oil prices test multi-month highs due to new sanctions on the Russian oil industry, while precious metals are under strong pressure.

The technical picture remains unchanged as USD/CAD needs to settle above the recent highs near the 1.4460 level to gain sustainable upside momentum in the near term.

USD/JPY Rebounds From Session Lows

USD/JPY made an attempt to settle below the 157.00 level but lost momentum and rebounded above 157.50.

Currently, USD/JPY is trying to settle back above the 50 MA at 157.64. In case this attempt is successful, USD/JPY will move towards the nearest resistance at 158.50 – 159.00.

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