EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Ground After PMI Reports

Key Insights

• EUR/USD tests support at 1.0970.
• GBP/USD pulls back from yearly highs as traders take some profits off the table. 
• USD/JPY tests new highs as BoJ’s policy remains dovish. 

U.S. Dollar

U.S. Dollar Index gained ground as traders reacted to the better-than-expected ISM Manufacturing PMI report, which showed that ISM Manufacturing PMI improved from 46.3 in March to 47.1 in April.

In case the U.S. Dollar Index settles above the resistance at 102.30, it will move towards the next resistance level at 102.65. A successful test of this level will push the U.S. Dollar Index towards the resistance at 102.80.

R1:102.30 – R2:102.65 – R3:102.80

S1:102.00 – S2:101.50 – S3:101.05

EUR/USD

EUR/USD pulled back as traders focused on the general strength of the U.S. dollar. It looks that EUR/USD bulls are cautious ahead of the Fed decision, which will be released on Wednesday.

If EUR/USD declines below the support at 1.0970, it will head towards the next support level at 1.0940. A move below this level will push EUR/USD towards the support at 1.0910.

R1:1.1000 – R2:1.1030 – R3:1.1050

S1:1.0970 – S2:1.0940 – S3:1.0910

GBP/USD

GBP/USD pulled back below the 1.2500 level as traders took some profits off the table near yearly highs. The strong rebound of Treasury yields served as a bearish catalyst for GBP/USD.

If GBP/USD manages to settle below the support at 1.2500, it will move towards the support level at 1.2460. On the upside, a move above 1.2500 will push GBP/USD towards the resistance at 1.2525.

R1:1.2525 – R2:1.2550 – R3:1.2600

S1:1.2500 – S2:1.2460 – S3:1.2430

USD/CAD

USD/CAD settled below the 1.3550 level after an unsuccessful attempt to climb above 1.3570. Today’s pullback in the oil markets is bearish for the Canadian dollar, but USD/CAD failed to develop upside momentum.

If USD/CAD gets below the support at 1.3530, it will head towards the  next support at 1.3490. A move below this level will open the way to the test of the support at 1.3450.

R1:1.3550 – R2:1.3570 – R3:1.3610

S1:1.3530 – S2:1.3490 – S3:1.3450

USD/JPY

USD/JPY continues to move higher as traders react to the recent BoJ decision. Japan’s central bank maintained its ultra-dovish policy, which was bearish for the Japanese yen.

In case USD/JPY moves above the 137.90 level, it will head towards the next resistance at 139.00. A successful test of this level will push USD/JPY towards the resistance at 139.90.

R1:137.90 – R2:139.00 – R3:139.90

S1:137.00 – S2:136.50 – S3:135.50

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