U.S. Dollar Gains More Ground: Analysis For EUR/USD, GBP/USD, USD/JPY, USD/CAD

By:

Vladimir Zernov

Published: Oct 3, 2024, 16:55 GMT+00:00

Key Points:

GBP/USD pulled back as BoE Governor suggested that the central bank could cut rates more aggressively.
USD/CAD moved higher, supported by the strong rally in the oil markets.
USD/JPY made an attempt to settle above the 147.00 level.

U.S. Dollar Gains Ground As ISM Services PMI Report Beats Expectations

DXY 031024 4h Chart

U.S. Dollar Index tests new highs as traders focus on the better-than-expected ISM Services PMI report, which indicated that ISM Services PMI improved from 51.5 in August to 54.9 in September. The services sector stays strong, which is bullish for the American currency.

A successful test of the resistance at 102.00 – 102.20 will open the way to the test of the next resistance level at 103.40 – 103.60.

EUR/USD Tests Support At 1.1000 – 1.1015

EUR/USD 031024 4h Chart

EUR/USD remains under pressure as traders bet that ECB will cut rates aggressively to provide support to the European economy.

In case EUR/USD declines below the support at 1.1000 – 1.1015, it will head towards the next support level at 1.0900 – 1.0915.

GBP/USD Retreats As Traders Focus On Governor Bailey’s Comments

GBP/USD 031024 4h Chart

GBP/USD tests new lows as traders focus on the recent comments from BoE governor Bailey, who noted that the central bank could cut rates more aggressively.

A move below the support at 1.3120 – 1.3140 will push GBP/USD towards the next support level at 1.3000 – 1.3020.

USD/CAD Tests New Highs As Oil Prices Soar

USD/CAD 031024 4h Chart

USD/CAD gains ground as traders focus on the rally in the oil markets, which was triggered by Biden’s remarks about a potential strike on Iran’s oil production facilities.

If USD/CAD climbs above the 1.3550 level, it will head towards the nearest resistance, which is located in the 1.3600 – 1.3620 range.

USD/JPY Tests The 147.00 Level

USD/JPY 031024 4h Chart

USD/JPY is trying to settle above the 147.00 level as traders focus on the economic data from the U.S. Rising Treasury yields provide additional support to USD/JPY.

In case USD/JPY manages to settle above 147.00, it will head towards the next resistance level at 149.50 – 150.00.

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

About the Author

Vladimir Zernovauthor

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.