U.S. Dollar Moves Away From Session Highs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:

Vladimir Zernov

Published: Jan 31, 2025, 16:45 GMT+00:00

Key Points:

EUR/USD settled near the 1.0400 level as traders reacted to Germany's inflation data.
USD/CAD tested new highs as U.S. will impose tariffs on Canada.
USD/JPY climbed towards the 155.00 level as Japan's Unemployment Rate declined to 2.4%.

In this article:

EUR/USD

GBP/USD

USD/CAD

USD/JPY

U.S. Dollar Is Mostly Flat Ahead Of The Weekend

DXY 310125 4h Chart

U.S. Dollar Index tested resistance at 108.30 – 108.50 but lost momentum and pulled back. Today, traders focused on the PCE Price Index report, which indicated that PCE Price Index increased by 0.3% month-over-month in December. The report met analyst estimates.

If U.S. Dollar Index settles above the 108.50 level, it will move towards the next resistance level at 109.20 – 109.40.

EUR/USD Attempts To Settle Back Above 1.0400

EUR/USD 310125 4h Chart

EUR/USD is mostly flat as traders focus on Germany’s inflation data. Inflation Rate declined from 2.6% in December to 2.3% in January, compared to analyst forecast of 2.6%.

A move above the 1.0400 level will push EUR/USD towards the nearest resistance level at 1.0420 – 1.0435.

GBP/USD Rebounds From Session Lows

GBP/USD 310125 4h Chart

GBP/USD gained some ground as traders reacted to Nationwide Housing Prices report from the UK. The report indicated that housing prices increased by 4.1% year-over-year in January, compared to analyst forecast of 4.3%.

In case GBP/USD climbs above the 1.2450 level, it will get to the test of the nearest resistance at 1.2485 – 1.2500.

USD/CAD Tested New Highs

USD/CAD 310125 4h Chart

USD/CAD tested new highs as traders focused on Donald Trump’s tariff plans. Canada will be hit with 25% tariffs on Saturday.

A successful test of the resistance at 1.4540 – 1.4560 will push USD/CAD towards the next resistance level at 1.4650 – 1.4665. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in the near term.

USD/JPY Gains Ground As Japan’s Unemployment Rate Declines

USD/JPY 310125 4h Chart

USD/JPY is moving higher as traders react to economic data from Japan. Unemployment Rate declined from 2.5% in November to 2.4% in December, compared to analyst forecast of 2.5%. Retail Sales increased by 3.7% year-over-year, compared to analyst consensus of 3.2%.

A move above the 50 MA at 155.38 will push USD/JPY towards the resistance level at 156.00 – 156.50.

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.