U.S. Dollar Tests New Highs
U.S. Dollar Index gains ground as traders focus on rising oil prices. Oil markets gained 2% amid escalation in the Middle East. Iran-backed Houthis attacked Saudi airports, killing civilians. Traders bet that U.S. may intervene to provide additional support to Saudi Arabia. Such a scenario would be bullish for oil prices and will raise inflation risks, providing additional support to the U.S. dollar.
Currently, U.S. Dollar Index is trying to settle above the resistance level at 102.35 – 102.50. This resistance level has been tested many times and proved its strength. In case U.S. Dollar Index manages to settle above 102.50, it will head towards the next resistance at 103.15 – 103.30.
EUR/USD Remains Under Strong Pressure
EUR/USD is losing ground as traders focus on the rally in the oil markets. European debt markets remain under pressure, indicating that traders remain worried about inflation risks.
EUR/USD attempts to settle below the support level at 1.1175 – 1.1190. If EUR/USD manages to settle below the 1.1175 level, it will head towards the next support, which is located in the 1.1075 – 1.1090 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
GBP/USD Retreats As Oil Prices Rise
GBP/USD pulls back as traders focus on general strength of the U.S. dollar. There are no important economic reports scheduled to be released in the U.S. and UK today, so traders will stay focused on market sentiment.
If GBP/USD settles below the 50 MA at 1.3229, it will head towards the nearest support, which is located in the 1.3150 – 1.3165 range. A successful test of the support at 1.3150 – 1.3165 will push GBP/USD towards the next support level at 1.3030 – 1.3045.
EUR/USD Price Forecast
Every new EUR/USD analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all EUR/USD forecastsOn the upside, GBP/USD needs to settle back above the 50 MA to have a chance to gain upside momentum in the near term. In this case, GBP/USD will move towards the resistance level at 1.3285 – 1.3300.
USD/CAD Gains Ground As Precious Metals Pull Back
USD/CAD is moving higher as traders react to the pullback in precious metals markets. Gold declined towards the $4150 level, while silver settled below $60.50. Other commodity-related currencies are also losing ground in today’s trading session.
USD/CAD settled above the resistance level at 1.4235 – 1.4250 and is moving towards the 1.4300 level. In case USD/CAD climbs above 1.4300, it will head towards the resistance at 1.4350 – 1.4365.
USD/JPY Attempts To Settle Above 158.50
USD/JPY gains ground as traders stay bullish despite intervention risks. According to FedWatch Tool, the probability of a rate hike at the next meeting in October increased to 21.6%. Bond traders believe that Fed will not raise rates despite rising oil prices. However, the market expects that Fed will raise the federal funds rate by 25 bps at the meeting in December.
USD/JPY has recently moved above the resistance level at 158.00 – 158.50 and is trying to gain additional upside momentum. In case this attempt is successful, USD/JPY will head towards the resistance at 160.00 – 160.50.
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