U.S. Dollar Tests New Highs As Rally Continues: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Keeps Moving Higher

U.S. Dollar Index tests new highs as rally continues. Traders reduce bets on dovish Fed, which is bullish for the American currency.

Currently, U.S. Dollar Index is trying to settle above the resistance at 100.00 – 100.15. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance level, which is located in the 101.85 – 102.00 range.

EUR/USD Remains Under Pressure

EUR/USD pulled back below the support at 1.1515 – 1.1530 and is trying to settle below the 1.1500 level.

If EUR/USD manages to settle below 1.1500, it will move towards the next support level at 1.1400 – 1.1415. RSI is close to the oversold territory, but there is enough room to gain downside momentum in case the right catalysts emerge.

GBP/USD Tests New Lows

GBP/USD remains under strong pressure as traders focus on recent comments from Chancellor Rachel Reeves, who said that the economic situation had deteriorated since 2024.

The nearest support level for GBP/USD is located in the 1.3015 – 1.3030 range. A move below the 1.3015 level will push GBP/USD towards the next support at 1.2885 – 1.2900.

USD/CAD Tests Resistance At 1.4080 – 1.4095

USD/CAD gains ground as traders focus on the pullback in commodity markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A successful test of the resistance at 1.4080 – 1.4095 will open the way to the test of the next resistance level at 1.4150 – 1.4165.

USD/JPY Pulls Back Amid Falling Treasury Yields

USD/JPY retreats as traders react to falling Treasury yields. The yield of 2-year Treasuries declined towards the 3.57% level, while the yield of 10-year Treasuries pulled back below 4.10%.

In case USD/JPY settles below the 50 MA at 153.15, it will head towards the support level at 151.00 – 151.50.

For a look at all of today’s economic events, check out our economic calendar.