EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Moves Higher As Treasury Yields Rise
Key Insights
- EUR/USD is trying to settle below the 1.0700 level.
- USD/CAD tested the 1.3400 level as demand for commodity-related currencies increased.
- USD/JPY remained stuck near the resistance level at 139.60.
U.S. Dollar
U.S. Dollar Index continues its attempts to settle above the resistance at 104.10. Treasury yields are moving higher, providing additional support to the American currency.
A successful test of the 104.10 level will push the U.S. Dollar Index towards the next resistance at 104.45. If the U.S. Dollar Index settles above this level, it will move towards the 104.70 level.
Your capital is at risk
R1:104.10 – R2:104.45 – R3:104.70
S1:103.75 – S2:103.50 – S3:103.20
EUR/USD
EUR/USD is trading near the 1.0700 level. Today, traders focused on the Euro Area Retail Sales report, which showed that Euro Area Retail Sales remained unchanged in April, compared to analyst consensus of +0.2%.
In case EUR/USD settles below 1.0700, it will get to the test of the support at 1.0670. A move below 1.0670 will push EUR/USD towards the support level at 1.0635.
R1:1.0730 – R2:1.0750 – R3:1.0775
S1:1.0700 – S2:1.0670 – S3:1.0635
GBP/USD
GBP/USD remains under pressure as Treasury yields are moving higher. UK BRC Sales Monitor missed estimates, which served as an additional bearish catalyst for GBP/USD.
In case GBP/USD settles below 1.2400, it will move towards the support level at 1.2370. A successful test of this level will push GBP/USD towards the next support at 1.2325.
R1:1.2440 – R2:1.2470 – R3:1.2485
S1:1.2400 – S2:1.2370 – S3:1.2325
USD/CAD
USD/CAD moved lower amid rising demand for commodity-related currencies. Canada’s Ivey PMI missed analyst estimates but did not put pressure on the Canadian dollar.
A successful test of the support at 1.3380 will push USD/CAD towards the next support level at 1.3335. A move below this level will open the way to the test of the support at 1.3300.
R1:1.3410 – R2:1.3440 – R3:1.3485
S1:1.3380 – S2:1.3335 – S3:1.3300
USD/JPY
USD/JPY is trying to settle back above the resistance at 139.60, but it looks that it will need additional catalysts to gain sustainable upside momentum.
A move above 139.60 will push USD/JPY towards the resistance at 140.50. If USD/JPY climbs above this level, it will head towards the next resistance at 141.60.
R1:139.60 – R2:140.50 – R3:141.60
S1:138.70 – S2:137.50 – S3:136.50
For a look at all of today’s economic events, check out our economic calendar.