EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Is Flat In Quiet Trading

Key Insights

• EUR/USD is trading near the 1.0900 level as traders react to Germany’s exports data. 
• GBP/USD managed to gain some upside momentum as traders bet on the hawkish BoE. 
• USD/JPY moved lower amid profit-taking. 

U.S. Dollar

U.S. Dollar Index is mostly flat in quiet trading as traders are not ready for big moves during the U.S. holiday.

U.S. Dollar Index needs to climb above the 103.45 level to continue its rebound. On the support side, the nearest support for the U.S. Dollar Index is located at the recent lows in the 102.00 – 102.15 area.

EUR/USD

EUR/USD remains stuck near the 1.0900 level as traders react to Germany’s Exports data, which showed that Exports declined by 0.1% month-over-month in May, compared to analyst consensus of +0.3%.

In case EUR/USD settles below the 1.0900 level, it will head towards the support in the 1.0800 – 1.0825 range. On the upside, a move above 1.0935 will provide EUR/USD with a chance to gain additional upside momentum.

GBP/USD

GBP/USD gains ground as the rebound continues. Traders expect that the BoE will continue to raise rates to fight inflation, which is bullish for the British pound.

From the technical point of view, GBP/USD managed to settle above the 50 MA and is moving towards the resistance at yearly highs in the 1.2820 – 1.2850 range.

USD/CAD

USD/CAD is moving lower as traders focus on the rebound in the oil markets, which is triggered by Saudi Arabia’s and Russia’s production cuts.

Currently, USD/CAD is testing the support at 1.3180 – 1.3210. In case this test is successful, USD/CAD will move towards the next support level in the 1.3080 – 1.3110 area.

USD/JPY

USD/JPY is losing some ground as traders continue to take profits after the strong rally.

Taking a look at the daily chart, consolidation continues but RSI remains in the overbought territory. Bulls will need additional catalysts to push USD/JPY to new highs.

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