U.S. Dollar Soars As U.S. And China Reduce Tariffs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests Multi-Week Highs

U.S. Dollar Index gains ground as U.S. and China will lower tariffs to negotiate a trade deal. U.S. tariffs for most Chinese goods will be reduced to 30%, while Chinese tariffs will drop to 10%.

Currently, U.S. Dollar Index is trying to settle above the resistance at 101.40 – 101.60. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located in the 103.30 – 103.50 range.

EUR/USD Tests Support At 1.1110 – 1.1130

EUR/USD is under pressure as traders focus on the U.S. – China agreement to lower tariffs for 90 days.

If EUR/USD settles below the support level at 1.1110 – 1.1130, it will move towards the next support level at 1.0900 – 1.0920. It should be noted that RSI is in the oversold territory, so the risks of a rebound are increasing.

GBP/USD Is Losing Ground As Traders Focus On Tariff News

GBP/USD pulled back as traders focused on general strength of the American currency.

In case GBP/USD stays below the 1.3200 level, it will move towards the next support level at 1.3000 – 1.3020.

USD/CAD Gains Ground As Demand For Commodity-Related Currencies Declines

USD/CAD tests new highs as traders react to the strong pullback in precious metals markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above the 1.4000 level will open the way to the test of the next resistance level at 1.4060 – 1.4080.

USD/JPY Rallies As Treasury Yields Rise

USD/JPY rallied as traders focused on rising Treasury yields. The yield of 2-year Treasuries climbed towards the 4.00% level, while the yield of 10-year Treasuries settled near 4.45%.

A successful test of the resistance at 147.50 – 148.00 will push USD/JPY towards the next resistance level at 151.50 – 152.00.

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