U.S. Dollar Tests Multi-Year Lows As Trump Attacks Powell: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Lows

U.S. Dollar Index tested new lows as traders focused on Trump’s efforts to remove Fed Chair Powell. In addition, it looks that foreign investors sell U.S. assets due to trade wars, which is bearish for U.S. dollar.

Currently, U.S. Dollar Index is trying to settle back above the 98.50 level. In case this attempt is successful, it will head towards the nearest resistance level at 98.80 – 99.00.

EUR/USD Tested Resistance At 1.1550 – 1.1570

EUR/USD pulled back from session highs as traders took some profits off the table after the strong rally.

The nearest support level for EUR/USD is located in the 1.1450 – 1.1470 range. In case EUR/USD declines below the 1.1450 level, it will head towards the next support at 1.1275 – 1.1290.

GBP/USD Pulled Back From Session Highs On Profit-Taking

GBP/USD moved higher as traders worried about Fed’s independence. From the technical point of view, GBP/USD faced resistance at 1.3400 – 1.3420 as traders have started to take profits off the table after the strong move.

In case GBP/USD declines below the 1.3350 level, it will head towards the nearest support at 1.3300 – 1.3320.

USD/CAD Found Support Near The 1.3800 Level

USD/CAD found support at 1.3800 – 1.3820 and is trying to rebound as traders focus on the strong pullback in the oil markets. Other commodity-related currencies gained upside momentum in today’s trading session.

If USD/CAD settles above the 1.3820 level, it will move towards the nearest resistance, which is located in the 1.3930 – 1.3950 range.

USD/JPY Tested New Lows

USD/JPY pulled back as traders focused on general weakness of the American currency.

RSI is in the oversold territory, and the risks of a pullback are increasing. A move above the 141.00 level will push USD/JPY towards the next resistance at 141.50 – 142.00.

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