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U.S. Dollar Retreats At The Start Of The Week: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD moved towards the 1.1400 level as traders reacted to Dallas Fed Manufacturing Index report.
- GBP/USD tested resistance at 1.3400 - 1.3420.
- USD/JPY declined below the 143.00 level amid falling Treasury yields.
U.S. Dollar Index Declines As Dallas Fed Manufacturing Index Misses Estimates
U.S. Dollar Index pulls back as traders react to Dallas Fed Manufacturing Index report. The report showed that Dallas Fed Manufacturing Index decreased from -16.3 in March to -35.8 in April, compared to analyst forecast of -15.
The nearest support level for U.S. Dollar Index is located in the 98.80 – 99.00 range. A move below the 98.80 level will push U.S. Dollar Index towards the next support at 97.50 – 97.70.
EUR/USD Attempts To Settle Above 1.1400
EUR/USD gains ground as traders bet that U.S. – China trade war will put material pressure on the American currency.
In case EUR/USD settles above the 1.1400 level, it will head towards the nearest resistance, which is located in the 1.1450 – 1.1470 range.
GBP/USD Tests Resistance At 1.3400 – 1.3420
GBP/USD tests resistance at 1.3400 – 1.3420 as traders focus on general weakness of the American currency.
If GBP/USD manages to settle above the 1.3420 level, it will move towards the next resistance at 1.3485 – 1.3500.
USD/CAD Stays Range-Bound
USD/CAD is mostly flat despite the pullback in the oil markets. Other commodity-related currencies are moving higher in today’s trading session.
If USD/CAD settles above the 1.3900 level, it will get to the test of the resistance at 1.3930 – 1.3950. A move above 1.3950 will push USD/CAD towards the resistance at 1.4030 – 1.4050.
USD/JPY Pulls Back As Treasury Yields Fall
USD/JPY pulls back as traders focus on falling Treasury yields. The yield of 2-year Treasuries pulled back towards 3.70%, while the yield of 10-year Treasuries settled near the 4.24% level.
In case USD/JPY settles below 142.50, it will get to the test of the nearest support at 141.50 – 142.00. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in the near term.
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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