U.S. Dollar Tests Multi-Year Lows As Sell-Off Continues: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Under Strong Pressure

U.S. Dollar Index remains under pressure as traders focus on U.S. policy risks and react to CB Consumer Confidence report. The report indicated that Consumer Confidence decreased from 89.1 in December to 84.5 in January, compared to analyst forecast of 90.9.

Currently, U.S. Dollar Index is trying to settle below the support at 96.35 – 96.50. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 95.55 – 95.70 range.

EUR/USD Tests Resistance At 1.1965 – 1.1980

EUR/USD gained ground as rally continued. From a big picture point of view, traders continue to cut their exposure to U.S. dollar amid geopolitical tensions and unpredictability of U.S. trade policy.

In case EUR/USD manages to settle above the resistance at 1.1965 – 1.1980, it will move towards the next resistance level at 1.2020 – 1.2035.

GBP/USD Tests New Highs As Rally Continues

GBP/USD tests new highs as traders stay bearish on U.S. dollar ahead of Fed decision, which will be released tomorrow.

If GBP/USD stays above the resistance at 1.3710 – 1.3725, it will move towards the next resistance, which is located in the 1.3815 – 1.3830 range.

USD/CAD Is Heading Towards The Support At 1.3575 – 1.3590

USD/CAD tests new lows amid strong demand for commodity-related currencies. From the technical point of view, USD/CAD settled below the support at 1.3650 – 1.3665 and moved towards the next support level at 1.3575 – 1.3590.

RSI has recently declined into the oversold territory, but there is enough room to gain additional downside momentum in the near term.

USD/JPY Tests New Lows

USD/JPY remains under pressure as traders cut their bets on weak yen amid intervention risks.

In case USD/JPY manages to settle below the 153.00 level, it will head towards the support at 151.50 – 152.00.

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