U.S. Dollar Pulls Back Ahead Of U.S. – China Talks: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests Support At 100.20 – 100.40

U.S. Dollar Index  pulled back as traders took some profits off the table and focused on the upcoming U.S. – China trade talks. President Trump said that an 80% tariff on China was a good idea, but it was not clear whether U.S. and China would reach an agreement over the weekend.

In case U.S. Dollar Index settles below the support level at 100.20 – 100.40, it will head towards the 50 MA at 99.81.

EUR/USD Gains Ground As Traders Focus On U.S. – China Talks

EUR/USD is moving higher as traders wait for the results of U.S. – China talks. Currently, EUR/USD is trying to settle above the resistance at 1.1275 – 1.1290.

In case this attempt is successful, EUR/USD will head towards the next resistance level, which is located in the 1.1450 – 1.1470.

GBP/USD Tests Resistance At 1.3300 – 1.3320

GBP/USD tests resistance at 1.3300 – 1.3320 as traders focus on general weakness of the U.S. dollar.

If GBP/USD climbs above the 1.3320 level, it will move towards the resistance at 1.3400 – 1.3420.

USD/CAD Tests New Highs

USD/CAD is moving higher as traders react to the Unemployment Rate report from Canada. The report indicated that Unemployment Rate increased from 6.7% in March to 6.9% in April, compared to analyst forecast of 6.8%.

If USD/CAD settles above the 1.3950 level, it will head towards the next resistance level at 1.4060 – 1.4080. RSI has recently moved into the overbought territory, but there is enough room to gain additional momentum in the near term.

USD/JPY Pulls Back Ahead Of The Weekend

USD/JPY pulled back after an unsuccessful attempt to settle above the 146.00 level.

In case USD/JPY settles below the 145.00 level, it will head towards the nearest support, which is located in the 143.50 – 144.00 range.

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