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U.S. Dollar Pulls Back From Session Highs Amid Geopolitical Developments: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD moved back towards the 1.1550 level despite the disappointing Euro Area Industrial Production report.
- USD/CAD remained under pressure as traders reacted to the rally in the oil markets.
- USD/JPY made an attempt to settle back above the 144.00 level.
U.S. Dollar Index Tests Support At 98.00 – 98.20
U.S. Dollar Index pulled back from session highs as traders focused on the developments in the Middle East and reacted to Michigan Consumer Sentiment report. The report indicated that Michigan Consumer Sentiment increased from 52.2 in May to 60.5 in June, compared to analyst forecast of 53.5.
In case U.S. Dollar Index settles back below the support at 99.00 – 99.20, it will move towards the next support level, which is located in the 96.70 – 96.90 range.
EUR/USD Attempts To Settle Back Above 1.1550
EUR/USD attempts to settle above the resistance at 1.1555 – 1.1570 despite the disappointing Euro Area Industrial Production report. The report showed that Euro Area Industrial Production decreased by -2.4% month-over-month in April, compared to analyst forecast of -1.7%.
If EUR/USD climbs above the 1.1570 level, it will move towards the next resistance at 1.1685 – 1.1700.
GBP/USD Rebounded From Session Lows
GBP/USD is moving towards the resistance level at 1.3620 – 1.3640 as traders focus on general market sentiment.
A move above the 1.3640 level will open the way to the test of the resistance level at 1.3735 – 1.3750.
USD/CAD Tests New Lows As Oil Prices Rally
USD/CAD tested new lows as traders reacted to the strong rally in the oil markets. Other commodity-related currencies pulled back in today’s trading session.
If USD/CAD settles below the 1.3575 level, it will head towards the next support, which is located in the 1.3420 – 1.3440 range.
USD/JPY Moves Higher As Treasury Yields Rise
USD/JPY climbed back above the support at 143.50 – 144.00 as traders focused on rising Treasury yields.
If USD/JPY manages to settle above the 144.00 level, it will head towards the recent highs near the 145.50 level. A move above this level will open the way to the test of the resistance at 147.50 – 148.00.
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.
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