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U.S. Dollar Tested New Lows: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD gained ground as traders reacted to ECB decision.
- USD/CAD tested support at 1.3650 - 1.3665 as demand for commodity-related currencies increased.
- USD/JPY moved higher amid rising Treasury yields.
U.S. Dollar Is Volatile After Initial Jobless Claims Data
U.S. Dollar Index is swinging between gains and losses as traders react to Initial Jobless Claims report. The report indicated that 247,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 235,000.
The nearest resistance level for U.S. Dollar Index is located in the 99.00 – 99.20 range. A move above the 99.20 level will push U.S. Dollar Index towards the next resistance at 100.20 – 100.40.
EUR/USD Tested New Highs After ECB Cut The Rate To 2.15%
EUR/USD tested new highs as traders focused on the ECB Interest Rate Decision. The ECB cut the rate from 2.4% to 2.15%, in line with analyst estimates.
If EUR/USD stays above the resistance at 1.1410 – 1.1425, it will head towards the next resistance level, which is located in the 1.1555 – 1.1570 range.
GBP/USD Attempts To Settle Above The Resistance At 1.3620 – 1.3640
GBP/USD is moving higher as traders focus on the UK Construction PMI report. The report showed that Construction PMI increased from 46.6 in April to 47.9 in May, compared to analyst forecast of 47.2.
A successful test of the resistance at 1.3620 – 1.3640 will push GBP/USD towards the next resistance level at 1.3735 – 1.3750.
USD/CAD Tests Support At 1.3650 – 1.3665
USD/CAD is trying to settle below the support level at 1.3650 – 1.3665 amid rising demand for commodity-related currencies.
In case this attempt is successful, USD/CAD will head towards the next support level, which is located in the 1.3575 – 1.3590 range.
USD/JPY Gains Ground As Treasury Yields Rise
USD/JPY attempts to settle back above the resistance at 143.50 – 144.00 as Treasury yields move higher.
A move above the resistance at 143.50 – 144.00 will push USD/JPY towards the 146.00 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
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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