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

U.S. Dollar Tests New Lows

U.S. Dollar Index is under pressure as traders remain worried about recent geopolitical developments and bet that some funds will reduce their exposure to U.S. assets.

Currently, U.S. Dollar Index is trying to settle below the support at 97.10 – 97.25. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 96.35 – 96.50 range.

EUR/USD Tests Resistance At 1.1900 – 1.1915

EUR/USD tests new highs despite the weaker-than-expected Ifo Business Climate report from Germany. The report showed that Ifo Business Climate remained unchanged at 87.6 in January, compared to analyst forecast of 88.1.

A successful test of the resistance at 1.1900 – 1.1915 will open the way to the test of the next resistance level at 1.1965 – 1.1980.

GBP/USD Climbed Towards Multi-Month Highs

GBP/USD continues to move higher as traders focus on the weakness of the American currency.

A move above the resistance at 1.3710 – 1.3725 will push GBP/USD towards the next resistance level at 1.3815 – 1.3830.

USD/CAD Attempts To Settle Back Above The 1.3700 Level

USD/CAD attempts to rebound despite the strong rally in precious metals markets. Other commodity-related currencies are moving higher in today’s trading session.

If USD/CAD manages to settle back above the 1.3700 level, it will move towards the resistance at 1.3735 – 1.3750.

USD/JPY Pulls Back As Traders Bet That BoJ May Intervene To Protect The Yen

USD/JPY remains under strong pressure as traders focus on recent comments from Japanese officials, which signaled that the government may intervene in case the Japanese yen tests recent lows. Japan will coordinate any actions with the U.S., and traders believe that BoJ has sufficient firepower to defend the 160.00 level.

In case USD/JPY stays below the support level at 154.50 – 155.00, it will move towards the next support at 151.50 – 152.00.

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